“Overall, prices are likely to reduce growth in the United Kingdom,” she added. “The change in expenditure by American consumers of British products, combined with lower global demand due to prices of potential counter-tale and disturbances of the supply chain should weigh on British activity.”
But Breeden, who sits on the monetary and financial policy committees of the BOE, said that the impact on the inflation of the evolution of commercial policy is “not clear”.
Although the blow to demand British exports can reduce inflationary pressures, Breeden said prices could also increase due to the disruption of the supply chain. It is therefore too early to judge what the bank’s prices will decide their next seat on May 8, she added.
“I honestly think it is too early to say how all these things will combine,” said Breeden. “The news that we have had is important. It is a unique change of the century in negotiation agreements for the globe, we have seen significant changes on market prices, in interest rates, and therefore I would not really want to put my money on decision -making on interest rates.”
Commenting on uncertainty from the United States – a few hours before reversing his prices, Trump had urged spectators to “be cool” in a social media position – Breeden said that she would have had “a set different from expectations” in her mind if she had made her speech yesterday.
“If nothing else, the frightening effect of the uncertainty of business policy on businesses and consumers is clear, but I think we have to do a good job to understand what the impact on inflation is … It is a bit early to say, given how much it will change by our May decision,” added the central banker.
His warning words follow the Central Bank’s financial policy committee issuing similar prudence in a recent meetings published yesterday.
“The probability of undesirable events and the potential severity of their impact have increased,” said the committee.
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