BOE’s Taylor Warns Bailey Neutral Rate Question Cannot Be Dodged

Bank of England policymaker Alan Taylor said UK officials cannot sidestep the question of where interest rates will settle, in a direct challenge to Governor Andrew Bailey’s approach.

Taylor has been unusually frank about where he expects the UK’s neutral rate — the level at which policy is neither stimulating nor weighing on the economy — to end up. Bailey and those close to the Governor have repeatedly dodged questions on the issue, claiming there is too much uncertainty.