The Bank of England is likely to extend its streak of interest rate holds while geopolitical noise “far exceeds” economic signals, Alan Taylor, external member of the Bank of England’s Monetary Policy Committee, indicated.
Speaking at the Barclays-CEPR Monetary Policy Forum on Tuesday (23 June), Taylor said geopolitics is in the driving seat when it comes to economic outcomes, and hence monetary policy. "It is a very uncomfortable and unwelcome place to be, but the reality we must face. So, we must watch both economic and geopolitical developments carefully and be ready to act in either direction, as necessary," he explained. He outlined what he called a "benign outcome" for energy prices by next year, made more likely because of the Memorandum of Understanding signed between the US and Iran to secure a...
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