BOE Taylor:
- We are a long way from neutral level of interest rates
- Neutral rate for me is 2.75 – 3% in the UK.
- Erosion of business confidence in the UK has continued in REC and PMI surveys..
- There is a sense of precaution and concernt
- Tariff shock was bigger than anyone expected.
- Although there are signs of a pause, we don’t know where it will go.
- Wage settlement data is coming in line with expectations for slower wage growth.
This article was written by Greg Michalowski at www.forexlive.com.