In an interview with CNBC on Thursday, Bank of England (BoE) Governor Andrew Bailey said that they see the impact of tariff uncertainty coming through to business investment and consumers.
Key takeaways
“Impact of tariffs on exchange rates has not been that large for the UK.”
“We are focused on the growth shock from tariffs.”
“I don’t think the UK economy is close to recession.”
“Last GDP data was quite encouraging.”
“Weak PMI data reflects companies’ uncertainty.”
“Talk about potential loss of dollar reserve currency status is overdone.”
“I hope upcoming UK inflation bump will be transitory.”
Market reaction
GBP/USD showed no reaction to these comments and was last seen gaining 0.35% on the day at 1.3300.
