BoE Must Take Trade War Risk to Growth Very Seriously
- The Bank of England is taking very seriously the risk to economic growth from the upheaval in global trade, Governor Andrew Bailey said on Wednesday, two weeks before the BoE's next interest rate decision and its latest economic forecasts.
- Bailey, speaking on the sidelines of the International Monetary Fund's spring meetings that have been dominated by U.S. President Donald Trump's trade tariffs, said Britain stood to be hit by the global disruption as an open economy. Bailey pointed to the IMF's sharp downgrade of its forecasts for economic growth in 2025, both globally and in the UK.
- Investors on Wednesday assigned a 100% probability to the BoE cutting rates by a quarter of a percentage point on May 8 after the next scheduled Monetary Policy Committee meeting.
(Source: Reuters)