Bank of England Governor on US Tariffs and UK Economy

In a recent interview with CNBC, Bank of England Governor Andrew Bailey shared his insights on the potential "growth shock" stemming from the tariffs imposed by the Trump administration. Despite these concerns, Bailey reassured that the United Kingdom is not on the brink of a recession.

Focus on Growth Shock: Bailey emphasized the central bank's concern over how these tariffs could adversely affect the UK's economic growth. "We're certainly quite focused on the growth shock," he stated, highlighting the delicate balance the bank must maintain in its policy decisions.

Monetary Policy Considerations

When questioned about the Bank of England's upcoming monetary policy decisions, Bailey pointed out the necessity to weigh "arguments on both sides." This includes considering the negative impacts of US tariffs on growth against the potential inflationary pressures from weak supply chains.