BoE's Taylor casts doubt on practicality of single rate hike

LONDON, Sept 29 (Reuters) - Bank of England policymaker Alan Taylor said on Tuesday it was unclear that it would be practical for the BoE to do a single rate hike to tame inflation without fuelling unwarranted market speculation of further increases.

The BoE voted 6-3 this month to keep rates on hold, but those advocating a quarter-point rate hike have argued that a single move early could reduce the need for greater tightening later.

Taylor – who does not see a compelling case to raise rates – cast doubt on the practicality of this approach and said markets had already misinterpreted the BoE's decision to hold rates in March as a prelude to multiple hikes this year.

"If you did that, would people say: 'You're off to the races!' March opened a window into what the risks are in how you communicate a strategy," he said.

(Reporting by David Milliken; editing by William James)