Early Days for Tariff Impact Assessment

Deputy Governor of the Bank of England for Financial Stability, Sarah Breeden, highlighted on Thursday the premature nature of evaluating the full impact of United States tariffs on the United Kingdom's inflation rates. "It's too early to tell," she remarked, emphasizing the complexity of the situation.

Economic Outlook and Risks

Breeden pointed out that recent developments in tariffs have a "material impact on economic outlook and risks." Despite the sterling not showing signs of weakening yet, she cautioned that this "could change," signaling potential volatility ahead.

A Century's Biggest Trade Policy Shift

Labeling US President Donald Trump's tariffs as the "biggest change to trade policy in a century," Breeden underscored the magnitude of the shift. She reassured, however, that the UK's banking system is robust enough to support the economy, even if "conditions worsen substantially."