Andrew Billy, the ruler of the Bank of England, stops before the start of the press report of the Bank of England on February 6, 2025 in London, England.
Kin Cheung – WPA Pool | Getty Images News | Gety pictures
The UK’s bank ruler said on Thursday that the UK was not the “direct recipient” of the potential definitions imposed by the United States, “and it will have an impact.
If the customs tariff is announced, its impact on global economic growth will need to be considered.
“I now think that with regard to growth in the global economy, if this will lead to the fragmentation of the global economy, this is not good for growth,” said Billy. He added, “The influence on inflation is more mysterious, because it depends on what other countries do in response, and depends on the consequences of these procedures and reactions on trade.”
US President Donald Trump has warned that the UK may be compatible with the customs tariff, but also indicated that a deal could be concluded. Trump announced last week definitions of goods imported from China, Canada and Mexico, before stopping the tasks planned on imports from the last economy.
On Thursday, Billy indicated that the UK “does not have a major commercial imbalance with the United States”
The United States was the largest trading partner in the UK in the year until September 2024, which represents more than 17 % of the total UK trade Official data.
Depending on the numbers you look, the two countries either have a small trade Disability or surplus. What is important for Trump, although – who expressed dissatisfaction when the United States exports less to a country of its imports – is that the numbers are almost balanced.
Billy also pointed out that services are a large part of the UK trade, which does not affect classic definitions in the same way as other goods.
“Graduated” decision and “flour” Boy
On Thursday, the Bank of England reduced the standard interest rate by 25 basis points to 4.5 %. Seven members from the MPC monetary policy committee voted in favor of the reduction, while two members voted to reduce the 50 points.
After this announcement, Billy said at a press conference that MPC expected to be able to reduce interest rates with inflation, but I noticed that these decisions would be taken on a separate meeting.
Speaking to CNBC, Billy described the pieces as “cautious” and “gradual”, adding that the focused bankers used these words “very deliberately.”
He said that the word “gradual” indicates the inflation process, while “caution” was a sign of “risks and doubts.”
Such doubts, “can lead to the existence of higher inflation, frankly, frankly, which we will have to deal with. We will get this type of height in inflation.” He added that this inflation is unlikely to continue.
On Thursday, Bank of England criticized its growth expectations for the United Kingdom for 2025, from 1.5 % to 0.75 %.
Economy FlatAccording to the data released in December, while reading the latest monthly domestic GDP reading showed that the economy expanded only 0.1 % in November, after its reduction by 0.1 % in October.
– Chloe Taylor of CNBC and Huliat contributed to this report.
