Uncertainty Over US Tariffs

Bank of England's Monetary Policy Committee member Megan Greene expressed uncertainty about the future of US tariffs, stating officials have "no idea" what they will look like "when the dust settles." This revelation highlights the unpredictable nature of international trade policies and their potential impact on global economies.

UK Economic Weakness: Demand or Supply?

Greene also shed light on the ongoing debate within the BoE regarding the root causes of the UK's economic weakness. "We are not sure if weakness in the UK economy is caused by demand or supply," she admitted, pointing to particular concerns over "supply and really weak productivity growth."

Trade Diversion from China

Amid these challenges, Greene anticipates "some trade diversion coming from China," suggesting a shift in global trade dynamics that could have far-reaching implications for the UK and beyond.

Fiscal Policies: A Potential Tailwind

The official also touched on the potential effects of governmental budget modifications and the role of European Union fiscal policies, which she believes could "be a tailwind" for the UK, offering a glimmer of hope amidst the prevailing uncertainty.