BoE's Taylor says current energy shock looks more like 2011 than 2022 in terms of magnitude; currently sees a high bar to hiking
Importance
Level 1
- Says UK faces low risks of inflation becoming unanchored given the weakening labour market and slowing wage growth
- If disruptions persist and the shock grows, MPC will have a tough choice to make
- If shock mild or short-lived, could allow more rate cuts once risks diminish.
- This energy shock is more similar to 2011, when the MPC faced an energy shock in a very weak economy, and decided to look through it.
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