Bank of England policymakers highlight policy rifts ...Middle East

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Bank of England policymakers highlight policy rifts

The Bank of England is out with its annual report and it contains comments from MPC members Clare Lombardelli and Alan Taylor. They highlight the differing vies on the path of policy as the market prices in about a 35% chance of a 25 bps cut this year.

Lombardelli

    I'm not confident that if we cut rates much further that we will be sufficiently restrictive to return inflation to target sustainablyLabour market loosening has been from a very tight starting point, so could still be reflecting normalisation rather than the emergence of slackI voted to hold rates at the last meeting due to my concerns about above-target and underlying inflationI'm not confident that there is a margin of slack in the economy

    Taylor

    I want to maintain restrictiveness as long as necessary but not longerThe greater danger is that we get behind the curve and stay too tight in the short termWe are in a fragile moment for the economy This article was written by Adam Button at investinglive.com.

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