Bank of England’s Megan Greene: Trump’s Tariffs May Lower UK Inflation

According to Megan Greene, a Bank of England policymaker, the UK is more likely to experience a decrease in inflation rather than an increase as a consequence of tariffs imposed by US President Donald Trump.

Greene suggested that the UK’s decision not to implement retaliatory tariffs implies it will probably become a hub for more affordable goods originating from Asia and the European Union.

“The tariffs arguably pose a greater disinflationary risk than an inflationary one,” Greene stated in an interview with Bloomberg TV.

She did note her ongoing worries regarding domestic inflationary pressures in the UK, which are driven by constrained supply capacity. She added that she had, until recently, adopted a “cautious” stance on interest rate reductions.