BoE Taylor (Dove) says energy shocks have an outsized role on inflation, energy shocks are faster than what Central Banks can respond to

BoE's Taylor, known for his dovish stance, underlines that energy shocks play a significant role in inflation dynamics, suggesting they escalate faster than central banks can effectively respond. This statement implies a continued focus on disinflation despite risks of subdued demand, which could influence market expectations for monetary policy and the pound's outlook. The commentary may signal a more cautious approach from the BoE regarding interest rates in the face of external pressures on inflation.