The case for further Bank of England interest rate increases remains weak unless elevated energy prices begin to generate clearer signs of persistent inflation across the wider economy, Monetary Policy Committee member Alan Taylor said on Tuesday, according to a report by Reuters.
Taylor said the recent rise in oil and gas prices could push Britain's headline inflation rate significantly higher over the winter. However, he argued that an increase in energy costs alone would not warrant tighter monetary policy, particularly in the absence of stronger evidence that inflation was spreading into other parts of the economy.
