BoE's Taylor sees less risk of inflation persistence than in 2022

LONDON, May 21 (Reuters) - Bank ​of ⁠England interest rate-setter Alan ​Taylor said on Thursday he saw less ​risk ‌of so-called second-round inflation effects from rising ⁠energy prices caused by the ⁠Iran war than ​from Russia's full-scale invasion of Ukraine in 2022.

"Economic conditions are such right now that ​second-round effects ‌are less likely to materialise than they did in 2022 but it's an uncertain situation," Taylor said ​in an event organised by news provider ‌MNI.

Interest rate hikes might be needed in the worst ‌of the central bank's three scenarios for the possible impacts of surging energy prices ​on the UK economy, he said.

Taylor was one ‌of the strongest proponents of interest rate cuts on the Monetary Policy Committee ⁠before ⁠the war. He voted with ‌the majority of the MPC in April pending ​further ​clarity on the extent of ‌damage to the UK economy caused by the conflict.