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The Bank of England may have to cut rates up to five or six times in the coming year because of the economic slowdown, according to a member of its rate-setting committee, as he urged the central bank to which works to ensure a “soft landing”.

Alan Taylor said the BoE’s “gradual” approach to rate cuts would mean four quarter-point cuts by the end of 2025. But he warned that a weakening economy could mean BoE calls for a “faster rate cut”, with its prime rate reduced by 1.25 or 1.5 percentage points in the coming year.

This “pessimistic scenario” becomes more likely given the recent data, said Taylor, an external member of the Monetary Policy Committee. “The latest data and forward-looking activity indicators show a much bleaker outlook for 2025.”

This is a developing story.