Finance
Bank of England's Taylor says he expects four rate cuts in 2025
Published by Global Banking & Finance Review®
Posted on January 15, 2025
1 min readLast updated: January 27, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 15, 2025
1 min readLast updated: January 27, 2026
Alan Taylor of the Bank of England predicts four interest rate cuts in 2025, double the current market expectations, citing economic headwinds.
LEEDS, England (Reuters) - Bank of England interest rate setter Alan Taylor said on Wednesday he expected the British central bank to cut interest rates four times in 2025, twice the pace priced into financial markets at the moment.
"I think my baseline is close to 100 (basis points)," Taylor said during a question-and-answer session after giving a speech at Leeds University.
"I don't think City economic forecasters are missing that. They've mostly got their forecasts in that range."
Taylor said a rise in British government bond yields this month represented a headwind for the economy.
(Reporting by Andy Bruce; Writing by William Schomberg)
Alan Taylor expects the Bank of England to cut interest rates four times in 2025.
Taylor's baseline expectation is close to 100 basis points in total rate cuts.
Taylor believes that City economic forecasters are not missing the expected rate cuts and have forecasts in that range.
Taylor mentions that a rise in British government bond yields this month represents a headwind for the economy.
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