BoE MPC member Alan Taylor warned today that the UK economy faces mounting risks to a soft landing, citing growing demand weakness and trade disruptions. In a speech, Taylor said his earlier forecast for a gradual disinflation and stable growth path is now at risk of being derailed in 2026.
“My reading of the deteriorating outlook suggested to me that we needed to be on a lower rate path, needing five cuts in 2025 rather than the market-implied quarterly pace of four,” Taylor said, citing recent shocks and global uncertainty that clouded his earlier view.
Taylor, who has consistently pushed for more aggressive easing, has voted for cuts in five of seven MPC meetings since joining last September—including a 50bps move in May followed by 25bps in June.
