The governor of the Ingence Bank says

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Bank of England’s governor said that Britain’s commercial deal with the United States is “good news”, but it still leaves the effective tariff rate higher than before, Donald Trump began to increase barriers on American partners.

Andrew Billy warned on Friday that the effect Trade war On the British economy, it is partially dependent on the deals of other countries with the American president, and stressed that the uncertainty was hitting British companies.

“The effective tariff rate will leave higher than it was before all this begins. I think we need to take this into consideration,” Bic A conference in Reykavik said.

He added: “The impact of all this development on the commercial front on expectations in the United Kingdom is conditional not only on the United Kingdom’s trade agreement but also what the rest of the world also agrees,” even when he welcomed the deal as “good news.”

On Thursday, the Bank of England reduced the record interest rate by a The quarter point to 4.25 percent Since it revealed the expectations that showed that the broader global trade conflict will have a “negative impact on the expectations of the United Kingdom,” according to Billy.

He said that this had been partially compensated by the financial market movements that reduced some pressure. At its latest expectations on Thursday, the Board of Directors estimated that global trade tensions would reduce the level of GDP in the United Kingdom by 0.3 percent in three years.

The Central Bank expected the UK’s economic growth by 1 percent this year and 1.25 percent in 2026.

On Thursday, the United Kingdom obtained the first deal with the United States since Trump began to impose a high tariff, and the discounts agreed to the punitive fees on car and steel exports, but the failure to reflect a flat tax by 10 percent that apply to most of the commodities.

“When I go throughout the country in the UK, companies tell me:” We delay investments because we are not very sure of what the world will look like. ”

Two members of the Monetary Policy Committee at the Bank of England-Swati Dengra and Alan Taylor-listed half the point this week, while the chief economist Ho Bell joined Catherine Mann in supporting any change.

Billy voted with the majority in favor of the reduction to 4.25 percent, another level seen in 2023.

On Friday, he said that there was an issue to reduce half a point due to the uncertainty, but this reduction risks “incompatible”, because inflation was primarily driven by local factors.