UK's Economic Challenges Highlighted by BoE's Alan Taylor

At the Bank of England Watchers' Conference, policymaker Alan Taylor shared his concerns about the UK's economic future, stating that the country is still far from achieving a neutral interest rate, which he estimates to be between 2.75% and 3%.

Concerns Over Business Confidence and Global Trade

Taylor pointed to the cautious mood among UK businesses, supported by recent REC and PMI data showing a decline in confidence. He also highlighted the unexpected severity of the economic impact from tariffs and criticized the Bank of England's central forecast for not adequately accounting for the risks associated with global trade dynamics.