The Bank of England (BoE) is closely monitoring the UK's economic landscape, with potential interest rate cuts on the horizon. This follows calls from Monetary Policy Committee (MPC) member Alan Taylor for proactive measures to address a weakening economy and mitigate risks.
In May 2025, the MPC reduced the Bank Rate by 0.25% to 4.25%. Taylor, along with Swati Dhingra, advocated for a more significant cut, citing concerns about global trade disruptions, especially those related to the U.S. trade war.
Taylor's stance is based on economic indicators, including weakening GDP growth and declining business sentiment. He suggests the Bank Rate could be reduced by 1.25 to 1.5 percentage points over the next year. The MPC is balancing economic support with price stability.