Bank of England Monetary Policy Committee member Alan Taylor said renewed monetary tightening is not compelling unless higher energy prices generate second-round effects and broader domestic inflation persistence. Taylor also questioned whether the Bank could deliver a single rate increase without prompting markets to anticipate a broader sequence of hikes, citing the market response to the Bank’s March decision to hold rates. The Bank voted 6-3 this month to leave rates unchanged, while supporters of a quarter-point increase argued that an early move could limit the need for greater tightening later. Taylor said the Bank’s January survey of firms’ 2027 wage expectations, with preliminary results potentially available by the December meeting, would be a key factor in his assessment. A result at or below the previous reading of somewhat over 3% would reassure him that inflation pressures remained contained. He said energy-intensive sectors had not seen accelerating cost pressures, food inflation had fallen unexpectedly and underlying wage growth was moderating toward the Bank’s 2% target. Taylor estimated the neutral rate at 2.75% to 3.00% and said Bank Rate and the overnight index swap curve remained substantially restrictive. The Bank expects inflation to reach about 3.7% in the fourth quarter of this year and 4.2% in the first quarter of 2027.