Uncertainty Over US Tariffs and UK Economic Weakness

Megan Greene, a member of the Bank of England's Monetary Policy Committee, voiced concerns on Friday about the unpredictable nature of future US tariffs. "We have no idea what US tariffs will look like when the dust settles," Greene stated, highlighting the uncertainty facing global trade policies.

Supply vs. Demand: The UK Economic Dilemma

Greene also touched on the challenges within the UK economy, pointing out the difficulty in determining whether current weaknesses stem from demand or supply issues. "We are more worried about supply and really weak productivity growth," she added, suggesting a cautious outlook for the UK's economic recovery.

Trade Diversion and Fiscal Policies

The official anticipates some trade diversion originating from China and expressed concerns over the impact of governmental budget changes. Furthermore, Greene suggested that European Union fiscal policies might offer some support, potentially acting as "a tailwind" for the UK amidst these challenging times.