BOE’s Taylor Urges Rate Cuts as Chinese Goods Curb Inflation

Bank of England rate-setter Alan Taylor said there are signs of “substantial trade divergence” that is lowering UK inflation as fresh data confirmed China is shifting exports to the rest of the world in response to US President Donald Trump’s trade war.

Taylor said UK inflation, currently 3.2%, is on course to fall to the 2% target in mid-2026 and remain there sustainably given that wage growth is cooling.