Uncertainty Looms Over US Tariffs' Impact on UK Inflation

Deputy Governor of the Bank of England for Financial Stability, Sarah Breeden, highlighted the uncertainties surrounding the impact of recent US tariffs on the UK's inflation rates. "It's too early to assess the overall effect," Breeden remarked during her statement on Thursday.

Economic Outlook and Risks

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

A Century's Biggest Trade Policy Shift

Breeden didn't mince words when describing US President Donald Trump's tariffs as the "biggest change to trade policy in a century." This bold statement underscores the significant shift in global trade dynamics and its potential repercussions.

UK Banking System's Resilience

Amidst these challenges, Breeden reassured that the UK's banking system is robust enough to support the economy, even if "conditions worsen substantially." This statement aims to bolster confidence in the UK's financial stability during uncertain times.