Bank of England Deputy Governor warns of US tariffs’ impact on UK economy

Clare Lombardelli, Bank of England Deputy Governor, warns of the pressure of Donald Trump's tariffs on UK GDP growth. However, she says that the impact on inflation rates remains unclear.

The regulator will take into account falling stock markets, heightened uncertainty, and the country's weakening economic growth while making a decision on further monetary easing, Lombardelli says.

According to Bloomberg, markets expect the Bank of England to cut rates at its May 8 meeting and price in at least two more reductions by the end of the year. 

Some central bank officials believe US import tariffs are likely to lower inflation. In their opinion, countries, shut out of US markets, are to seek alternatives and to cut prices.

The UK avoided the worst of the Trump’s tariffs, Bloomberg says. Most of the country’s goods are facing a 10% levy upon entering the US. The British government does not rule out the imposition of retaliatory duties. However, it says it will seek negotiations before taking any action.