BOE's Taylor: An extended hold at this level is appropriate policy

Bank of England external policy member Alan Taylor said an extended hold in interest rates is the appropriate response, reinforcing expectations that the BOE may keep policy restrictive for longer. He noted the bank rate is already 75 bps above his neutral level and argued the economy is very weak. Markets are still pricing a 25 bp hike to 4.00% by year-end, but the pound slipped 36 pips to 1.3211 after the comments, showing limited immediate FX support from a hawkish stance. Overall, the article is a policy commentary piece with mild bearish pressure on GBP.