{"id":144556,"date":"2025-05-30T16:33:10","date_gmt":"2025-05-30T16:33:10","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/144556\/"},"modified":"2025-05-30T16:33:10","modified_gmt":"2025-05-30T16:33:10","slug":"rachel-reeves-given-two-word-warning-over-economy-politics-news","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/144556\/","title":{"rendered":"Rachel Reeves given two-word warning over economy | Politics | News"},"content":{"rendered":"

Rachel Reeves has been hit with a fresh blow after a Bank of England rate-setter said he remains \u201cpretty concerned\u201d about the economic outlook. Alan Taylor signalled that Donald Trump<\/a>\u2019s tariffs trade war will continue to hinder the UK economy.<\/p>\n

He also indicated he will seek to cut interest rates<\/a> again soon and dismissed recent stronger-than-expected inflation figures. His remarks come as the Chancellor grapples to balance the books following her controversial \u00a340 billion tax raid Budget last Autumn.<\/p>\n

Since then the economy has floundered, inflation has risen and unemployment increased.<\/p>\n

Official figures showed that the inflation rate jumped to 3.5% in April, up from 2.6% in March.<\/p>\n

The rise in inflation to its highest level since January 2024 comes amid a backdrop of steady reductions in interest rates<\/a> \u2013 which had been kept elevated in a bid to curb high inflation \u2013 over the past year.<\/p>\n

Earlier this month, the Bank of England cut interest rates<\/a> to 4.25%, their lowest level for around two years, from 4.5%.<\/p>\n

Mr Taylor, who was among two dissenting rate-setters voting for a sharper cut to 4%, indicated he still hopes for further reductions in interest rates<\/a>.<\/p>\n

\u201cI\u2019m not going to pre-emptively announce my vote, but I think I indicated in my dissent that I thought we needed to be on a lower policy path,\u201d he told the Financial Times.<\/p>\n

\u201cI\u2019m seeing more risk piling up on the downside scenario because of global developments,\u201d he said, highlighting that President Trump\u2019s tariffs were set to drag on global economic growth.<\/p>\n

On Wednesday, the International Monetary Fund (IMF) said trade tensions linked to tariffs would reduce growth in the UK economy next year.<\/p>\n

Mr Taylor said he believes the recent uptick in inflation is largely caused by one-off factors, adding that he remained \u201cpretty concerned\u201d about the growth outlook for the economy.<\/p>\n

He added that recent developments in UK trade, such as the UK-EU deal secured earlier this month, were welcome, they would not wholly offset disruption from US tariff plans.<\/p>\n

The rate-setter also indicated that positive growth earlier this year was likely to be linked to firms bringing forward activity ahead of the potential tariffs, with growth likely to slow in the coming months.<\/p>\n","protected":false},"excerpt":{"rendered":"Rachel Reeves has been hit with a fresh blow after a Bank of England rate-setter said he remains…\n","protected":false},"author":2,"featured_media":144557,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[51,32,2614,1700,478,807,619,1219,16,10051,15],"class_list":{"0":"post-144556","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-donald-trump","10":"tag-donald-trump-tariffs","11":"tag-economy","12":"tag-interest-rates","13":"tag-keir-starmer","14":"tag-rachel-reeves","15":"tag-trade-war","16":"tag-uk","17":"tag-uk-economy","18":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114597750624590429","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/144556","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=144556"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/144556\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/144557"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=144556"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=144556"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=144556"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}