Key facts
- Bank of England MPC member Alan Taylor said the case for raising interest rates is not compelling.
- Taylor believes rate hikes require clear signals of broader inflation persistence from high energy prices.
- He was part of the 6-3 majority that voted to hold the Bank Rate at 3.75% earlier in September.
- Taylor wants to see clear evidence of second-round inflation effects before raising rates.
LONDON, Sept. 29 (Reuters) - The Bank of England's Monetary Policy Committee member Alan Taylor stated on Tuesday that the argument for increasing interest rates is not convincing unless sustained high energy prices lead to more evident signs of broader inflation persistence. Taylor, who was part of the 6-3 majority that decided to maintain the Bank Rate at 3.75% earlier this month, indicated that he requires clear evidence of "second-round effects" before supporting a rate increase. He noted that elevated energy prices alone do not guarantee the materialization of such risks.