BoE's Taylor says everything changed at the beginning of March after the Iran conflict abd says BoE February forecast is effectively obsolete because it did not include the energy shock
- The economy is moving into a position of slack.
- Probably correct to expect a need for interest rate hikes under BoE's scenario C outlook.
- Some tightening has happened relative to where BoE was in February.
- Have a very weak economy being hit by an inflationary supply shock, and there are big trade-offs for us to consider.
- Thinks UK is probably effectively about 100 basis points above the neutral rate at the moment.
- When asked about CPI inflation data, says it is still early days.
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