BoE's Lombardelli says US trade tariffs would pose risk to economic growth, FT reports
Adds more details from interview in paragraphs 2-3, background in paragraphs 4-6
Nov 26 (Reuters) -Bank of England's Clare Lombardelli said U.S. President-elect Donald Trump's proposed tariffs would pose a risk to economic growth in countries including the UK, she told the Financial Times in an interview published on Tuesday.
The deputy governor said it was too early to quantify the effects of Trump’s proposed tariffs but that BoE interest-rate-setters would discuss trade developments in upcoming meetings, according to the newspaper.
"I don’t want to speculate on the specifics but we know barriers to trade are not a good thing, whether they are tariffs or regulatory or others," Lombardelli said.
The comments in the interview came as Trump said on Monday he would sign an executive order imposing a 25% tariff on all products coming from Mexico and Canada to the United States.
On Monday, the deputy governor said she was more worried about the risk that inflation comes in higher - not lower - than the central bank has forecast as she made the case for only gradual reductions in interest rates.
The central bank has lowered rates twice since August, dropping to 4.75% from a 16-year high of 5.25%, less than cuts by the European Central Bank and the U.S. Federal Reserve due mostly to concerns about inflation pressure in the UK jobs market.
Reporting by Chandni Shah in Bengaluru
Editing by Chris Reese and Rod Nickel
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
