BoE's Taylor: Tariff shock was bigger than anyone expected

Bank of England's external Monetary Policy Committee member Alan Taylor noted a prevailing sense of precaution and concern among firms, adding that the tariff shock had been larger than anticipated.

Key Quotes

• Erosion of business confidence in UK has continued in REC and PMI surveys.
• There is a sense of precaution and concern.
• Tariff shock was bigger than anyone expected.
• Although there are signs of a pause, we don't know where it will go.
• Wage settlements data is coming in in line with expectations for slower wage growth.
• If you wait for every piece of data to confirm a fall in inflation, you will be behind the curve.
• International dimension is quite perilous.
• We are a long way from neutral level of interest rates.
• Neutral rate for me is 2.75–3% in the UK.
• Central forecast of BoE had 'quite mild' treatment of global trade situation.