Uncertainty Over US Tariffs and Their Impact on the UK Economy

Bank of England's Monetary Policy Committee member Megan Greene expressed concerns on Friday about the unpredictable nature of future US tariffs and their potential effects on the UK economy. "We have no idea what US tariffs will look like when the dust settles," Greene stated, highlighting the uncertainty that surrounds international trade policies.

Challenges in the UK Economy: Demand vs. Supply

Greene also pointed out the difficulties in determining whether the current weakness in the UK economy is due to demand or supply issues. "We are more worried about supply and really weak productivity growth," she added, suggesting that the economy might face significant challenges ahead.

Trade Diversion from China and EU Fiscal Policies

The official mentioned the possibility of trade diversion coming from China as a factor that could influence the UK's economic landscape. Additionally, Greene touched upon the potential impacts of governmental budget modifications and how European Union fiscal policies might serve as a "tailwind" for the UK, indicating a complex interplay of factors that could shape the future economic environment.