
- Bank of England Governor Andrew Bailey told C온라인카지노사이트 on Thursday that the U.K. was heading for more economic uncertainty, despite striking a trade deal with the U.S.
- "A U.K.-U.S. trade agreement is very welcome... But the U.K. is a very open economy," Bailey said.
- The central bank chief said he was not surprised the BOE voted only narrowly to cut rates on Thursday, as there were risks on both sides of the outlook.
Bank of England Governor Andrew Bailey told C온라인카지노사이트 on Thursday that the U.K. was heading for more economic uncertainty, despite the country being the under President Donald Trump's controversial tariff regime.
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"The tariff and trade situation has injected more uncertainty into the situation... There's more uncertainty now than there was in the past," Bailey told C온라인카지노사이트 in an interview.
"A U.K.-U.S. trade agreement is very welcome in that sense, very welcome. But the U.K. is a very open economy," he continued.
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That means that the impact from tariffs on the U.K. economy comes not just from its own trade relationship with Washington, but also from those of the U.S. and the rest of the world, he said.
"I hope that what we're seeing on the U.K.-U.S. trade side will be the first of many, and it will be repeated by a whole series of trade agreements, but we have to see that happen of course, and where it actually ends up."
"Because, of course, we are looking at tariff levels that are probably higher than they were beforehand."
Money Report
In Bank of England's released Thursday, the word "uncertainty" was used 41 times across its 97 pages, up from 36 times in February, according to a C온라인카지노사이트 tally.
The U.K. central bank by a quarter percentage point on Thursday, taking its key rate to 4.25%. The decision was highly divided among the seven members of its Monetary Policy Committee, with five voting for the 25 basis point cut, two voting to hold rates and two voting to reduce by a larger 50 basis points.
Bailey said that while some analysts had perceived the rate decision as more hawkish than expected — in other words, leaning toward holding rates elevated than slashing them rapidly — he was not surprised by the close vote.
"What it reflects is that there are two sides, there are risks on both sides here," he told C온라인카지노사이트.
"We could get a much more severe weakness of demand than we were expecting, that could then pass through to a weaker outlook for inflation than we were expecting."
"There's a risk on the other side that we could get some combination of more persistence in the inflation effects that are gradually working their way through the system," such as in wages and energy, while "supply capacity in the economy is weaker," he said.