There could be three Bank of England base rate cuts this year, a member of the Monetary Policy Committee suggests.

And inflation might even undershoot the Bank’s 2.0% target.

Alan Taylor, an external member of the MPC, made the comments while speaking to financiers and analysts ahead of a Treasury Select Committee hearing.

Government figures show consumer price inflation falling back to 3.0% last month driven by lower petrol prices and cheaper food and airfares.

“We might have two or three rate cuts to go before the theoretical neutral level” Taylor says.

But he admits there are external risks, especially with US tariffs, which could still derail both inflation and base rate hopes.

Taylor has been regarded as a dove on the MPC, broadly supporting larger rate cuts.