The financial markets estimated 100% a drop in interest rates of the Bank of England next month, while the effects of the evolution of the commercial war of Donald Trump continue to take place in the world economy.
LSEG data early Tuesday had shown a probability of 82% reduction from 4.5% to 4.25% on May 8.
But doubt has disappeared shortly after remarks on inflation by a member of the rate establishment committee.
Megan Greene, who voted with the majority for a hold on to the last meeting in Marchtold Bloomberg that we price are more likely to advance inflation in the United Kingdom than to increase the rate of price increases.
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His argument is essentially that the United Kingdom’s decision not to respond to Trump’s import rights through reciprocal rates could make the United Kingdom a destination for cheaper goods in Asia and Europe.
“Prices represent more a disinflationist risk than an inflationary risk,” she said, adding: “There is a ton of uncertainty around that, but there are inflationary and disinflationaries.”
Greene also said that a recent increase in the value of the book against the US dollar could also help to mitigate inflation, but warned that it was early to determine the probable currency route.
THE Bank expects inflation to increase this year despite a Pie larger than expected In March in March due to the impact of the increase in energy prices, but also the effects of taxation on companies from April.
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The trade war is largely tilted to weigh on economic activity worldwide.
It poses a problem for the bank because the increase in inflation limits the capacity of decision -makers to help stimulate growth thanks to interest rate drops.
LSEG data has also shown that the financial markets are expecting three drops in the Bank of England by the end of the year.
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The bank’s counterpart for the euro zone has reduced rates to a faster rate, as inflation has enabled it, due to the terrible performance of its collective economy.
As in the United Kingdom, the American central bank has also adopted a prudent approach to rate reductions due to the spectrum of domestic inflation resulting from the Trump trade war.
A perceived failure of the federal reserve to address a slowdown in the expected growth, largely resulting from the taxation of prices, has angry the president.
Trump said last week that the president of the bank, Jay Powell, should be dismissed and demanded a drop in “now” rate in a social media position.
Chancellor Rachel Reeves is in Washington this week for a series of meetings, but should have discussions with her American counterpart on a trade agreement to cancel the need for American / British prices.
Any rate reduced by the Bank of England would be a welcome boost in its pressure for the economic growth of times troubled for the order of world trade.