The decision comes a few hours before the United States and the United Kingdom should not announce the contours of a trade agreement which should soften the direct impact of President Donald Trump’s commercial prices, but which is unlikely to completely isolate the British economy of the fallout of more prolonged American struggles with China and the EU. Indeed, a large part of the work of the main sectors of the kingdom’s financial and commercial services
The bank has set a strong warning on its new forecasts, which see a 0.3% stroke of British growth this year, claiming that in its new report on quarterly monetary policy that the risks to its hypotheses are “large and bilateral”.
“The future constellation of trade policies is impossible to predict at this stage,” he said.
This uncertainty was reflected in a split for three between the nine members of the monetary policy committee. While five members voted for the drop of a quarter of a point, the chief economist of the Huw Pill bank and the external member Catherine Mann voted without any change, arguing that the underlying inflation is still too stubborn. At the other end of the spectrum, the external members Swati Dhingra and Alan Taylor voted for a half-point cup.
The bank has gained more latitude to reduce thanks to the fact that the book has strengthened and that world oil prices have dropped in the last month. In addition, the bank said that it expects slightly downward pressure on the prices of commercial disruption, noting that the evidence of companies reducing prices to move goods which were previously intended for the United States separately, the bank expressed more confidence than companies swallow at least one part of the increase in labor costs caused by the increase in national contributions of employers and another In the national salary, the two had effects last month.
Consequently, it now expects inflation to return to its target of 2% in the first quarter of 2027, a little earlier than its previous estimates.
Inflation was 2.6% in March, against a peak of more than 11% in 2023. But the bank expects it to rebound in the short term, due to certain significant increases in prices regulated by the government, such as the Council tax, energy bills. In addition, he noted that the downward trend in the prices of food and basic products has now reversed.
This story has been updated.
Politices
