Billy says that Boy should “seriously risk” to grow from Trump’s tariff

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The Governor of Bank of England Andrew Billy said that the Bank of England needs to “bear seriously” the risks to growth from Donald Trump’s tariff policies, indicating that the central bank was likely to reduce interest rates at its next meeting in response to the uncertainty of global trade.

“Trade supports growth,” said Billy in Washington on Wednesday. “The fragmentation of the global economy will be bad for growth.”

The US President announced on April 2, “Liberation Day”It will apply a 10 percent “mutual” tariff to the United Kingdom. While this is much less than 20 percent, Trump intends to advance the European Union and many other trade partners, Billy said that British growth will be affected with that.

“The United Kingdom is a very open economy. It is not the relationship between the United States and the United Kingdom only – it is the relationship between the United States and the rest of the world,” Billy said at a international financing conference. This means that the bank should “take seriously” the global effects of Trump’s policies.

Traders expect a quarter of a point to be reduced at the bank’s meeting next month Monetary Policy CommitteeIt was appointed in early May, according to the levels involved in the budget markets, and two or three others by the end of the year.

The Trump administration has suspended many measures that were revealed on April 2 for 90 days after a major sale in stock markets, US government debts and other assets in dollars after the president’s announcement.

While the markets were “operating in the past few weeks,” Billy said that the bank was closely monitoring the possibility of rapid relaxation of the sites of some institutions in the market for the United States Treasury.

Huo Bell, the chief economist at the Bank of England, said earlier on Wednesday that, given the fluctuations of the market, whether the central bank decided that quantitative mitigating was a way to reduce monetary policy, when interest rates reached minimum, or was a way to restore the system for job markets, it was a “living issue”.

In the past, the Bank of England launched the large bond purchase programs on the basis that it was better to “use a heavy hammer to break the walnuts” from risking a complete crisis. However, recently, the Bank of England’s response to turmoil in the market that followed the “mini” budget followed by former UK Prime Minister Liz Toss had shown that the most accurate surgeries may be equally effective.

Bell said that a brief postponement of the sales of the planned bonds in the fall of 2022 allowed the planet of the “cut tumor” and restore the performance of the market. He said in the future, “Whether we act as a scalpel or as heavy preparations it will become a very important question.”

Participated in additional reports by Ian Smith and Valentina Rumi in London