The vice governor of the Bank of England, Sarah Breeden, gave her opinion on the recently announced US tariffs and her possible economic impact.
Outstanding comments
The latest developments have a material impact on economic perspectives and risks.
The world has advanced significantly since the March MPC meeting.
The US tariffs are the greatest change in commercial policy in a century.
It is very uncertain what the general panorama will be for tariffs in the medium term.
In general, tariffs are likely to reduce the growth of the United Kingdom.
The impact of US tariffs on inflation is not clear.
Until now, the pound has not weakened due to tariffs, but this could change.
It is too early to evaluate the general impact on inflation for the United Kingdom and, therefore, the appropriate monetary response to tariffs.
The yields of government bonds have been volatile.
We consider that the risk of additional acute correction in risk assets prices remains high.
The United Kingdom’s banking system will still have the capacity to support the economy, even if the conditions worse substantially.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
