Inflation to hit target and stay there, Bank rate-setter says

The fall in inflation will be the result of a reduction in import prices and lower regulated utility prices on the back of the government’s cost-of-living measures in the budget. This should support the case for more interest rate cuts from the current 3.75 per cent, Taylor said in a speech in Singapore. The easing in the cost of living will be “sustainable, given cooling wage growth, and I now therefore expect monetary policy to normalise at neutral sooner rather than later. Interest rates should continue on a downward path, that is if my outlook continues to match up with…