Overview

• Alan Taylor called for rates below the current 4.25%, arguing that April’s 3.5% inflation surge reflected temporary tax and price effects.
• Taylor and Swati Dhingra pushed for a half-point cut, while Huw Pill and Catherine Mann raised concerns over persistent inflation.
• The Monetary Policy Committee lowered interest rates to 4.25% this month, their lowest level since 2023.
• UK GDP grew 0.7% in the first quarter, surpassing forecasts though external trade disputes pose risks.
• Taylor warned that US tariff measures and wider trade tensions could undermine future British economic growth.