Bank of England's Taylor: Central bank officials cannot evade the issue of neutral interest rates.

External member Taylor of the Bank of England's Monetary Policy Committee said that central bank officials cannot evade the issue of interest rate direction, directly challenging the practice of Governor Bailey. Taylor was unusually candid about his expectations for the eventual path of the UK's neutral interest rate, while Bailey and those around him have repeatedly avoided questions on this issue, claiming there is too much uncertainty. Taylor warned on Friday that avoiding this issue is "difficult, problematic, and in my view counterproductive." He once again called for a rate cut, stating that the Bank of England should lower interest rates to address the "deteriorating" economic environment, and warning that historical experience shows that the sooner it is done, the better.