U.S. tariffs likely to lower U.K. inflation, says BoE policymaker

Published 22/04/2025, 10:11
© Reuters

Investing.com -- Bank of England policymaker Megan Greene said on Tuesday that the United Kingdom (TADAWUL:4280) is more likely to experience lower inflation as a consequence of U.S. President Donald Trump’s tariffs.

Greene explained that the U.K.’s choice not to impose reciprocal tariffs could lead to the country becoming a destination for less expensive goods from Asia and the European Union.

Greene, during her interview with Bloomberg TV, noted that the tariffs pose more of a deflationary risk than an inflationary one for the UK.

Despite this, Greene expressed her ongoing worry about domestic inflation pressures in Britain due to a shortage of supply capacity.

She also revealed that she has been adopting a ’cautious’ stance towards rate cuts.

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