Uncertainty Over US Tariffs

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

UK Economic Weakness: Demand or Supply?

Greene also touched upon the challenges facing the UK economy, questioning whether the current weakness stems from demand or supply issues. "We are more worried about supply and really weak productivity growth," she added, emphasizing the need for a closer examination of the underlying causes.

Trade Diversion from China

The official predicted potential trade diversions originating from China, suggesting a shift in global trade dynamics that could impact the UK. Furthermore, Greene expressed concerns over the effects of governmental budget modifications and the potential influence of European Union fiscal policies on the UK's economic landscape.