BoE’s Taylor: Currently see a high bar to hiking

Alan Taylor, an external member of the Monetary Policy Committee of the Bank of England (BoE), said that he currently sees a high bar to hiking the rates at a conference in New York hosted by Exante Data. He also added that the current energy shock looks more like the 2011 situation than the 2022.

Key takeaways:

The current energy shock looks more like 2011 than 2022 in magnitude.

Currently see a high bar to hiking.

Holding policy steady preferable until impact of energy shock becomes clearer.

UK faces low risks of inflation becoming unanchored given weakening labour market and slowing wage growth.

If disruptions persist and shock grows, MPC will face tougher choice between high inflation and weaker growth.

If shock mild or short-lived, could allow for more rate cuts once risks diminish.”

Pound Sterling Price Today

The table below shows the percentage change of British Pound (GBP) against listed major currencies today. British Pound was the strongest against the Australian Dollar.

USD EUR GBP JPY CAD AUD NZD CHF
USD 0.22% 0.20% 0.14% 0.30% 0.72% 0.71% 0.36%
EUR -0.22% -0.02% -0.11% 0.08% 0.51% 0.50% 0.15%
GBP -0.20% 0.02% -0.06% 0.10% 0.53% 0.51% 0.17%
JPY -0.14% 0.11% 0.06% 0.15% 0.58% 0.55% 0.22%
CAD -0.30% -0.08% -0.10% -0.15% 0.43% 0.41% 0.07%
AUD -0.72% -0.51% -0.53% -0.58% -0.43% -0.02% -0.34%
NZD -0.71% -0.50% -0.51% -0.55% -0.41% 0.02% -0.34%
CHF -0.36% -0.15% -0.17% -0.22% -0.07% 0.34% 0.34%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).

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