BoE’s Taylor: I don't think bigger cuts are necessarily needed or desirable.

Dhwani Mehta FXStreet

Bank of England (BoE) policymaker Alan Taylor is speaking in a panel discussion titled "Central bank communication: current challenges" at the ECB Forum on Central Banking, in Sintra, on Wednesday.

Key quotes

Soft landing on interest rates at risk.

I don't think bigger cuts are necessarily needed or desirable.

Everything has to be taken into consideration, we are not at a preset path on rates.

Starting to see cracks in labor market.

MPC would be well-served by finding a vehicle for communicating its beliefs about future interest rates.

There are many potential ways to convey the estimates of the long-run neutral rate as judged by the various members.

I see greater probability of a downside scenario in 2026 pushing us off track, as demand weakness and trade disruptions build.

Underlying demand-supply balance is quickly shifting as slack opens up.

Estimate the UK neutral real rate to be about 0.75 to 1 percent, putting the neutral nominal rate at around 2.75 to 3 percent.

Quantitative tightening is not on a preset path.

I think five rate cuts are needed in 2025.

Market reaction

At the time of writing, GBP/USD Is trading 0.38% lower on the day near 1.3700, showing little to no reaction to these above comments.

British Pound PRICE Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the weakest against the US Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		0.27%	0.40%	0.50%	0.05%	0.22%	0.33%	0.18%
EUR	-0.27%		0.09%	0.22%	-0.25%	-0.03%	0.16%	-0.08%
GBP	-0.40%	-0.09%		0.14%	-0.36%	-0.18%	0.05%	-0.20%
JPY	-0.50%	-0.22%	-0.14%		-0.46%	-0.31%	-0.15%	-0.34%
CAD	-0.05%	0.25%	0.36%	0.46%		0.18%	0.39%	0.15%
AUD	-0.22%	0.03%	0.18%	0.31%	-0.18%		0.26%	-0.02%
NZD	-0.33%	-0.16%	-0.05%	0.15%	-0.39%	-0.26%		-0.25%
CHF	-0.18%	0.08%	0.20%	0.34%	-0.15%	0.02%	0.25%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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