{"id":9184,"date":"2025-04-10T22:37:14","date_gmt":"2025-04-10T22:37:14","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/9184\/"},"modified":"2025-04-10T22:37:14","modified_gmt":"2025-04-10T22:37:14","slug":"trump-turmoil-will-have-a-chilling-effect-on-uk-growth-says-deputy-bank-of-england-governor","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/9184\/","title":{"rendered":"Trump turmoil will have a ‘chilling effect’ on UK growth, says deputy Bank of England governor"},"content":{"rendered":"

By JOHN-PAUL FORD ROJAS<\/a> <\/a> <\/p>\n

Updated: 17:06 EDT, 10 April 2025 <\/p>\n

Donald Trump\u2019s trade war will have a \u2018chilling effect\u2019 on UK growth, a leading Bank of England official has warned.<\/p>\n

As market carnage showed little sign of abating yesterday, Sarah Breeden, deputy governor at the Bank, said that \u2018overall, tariffs are likely to lower UK growth\u2019.<\/p>\n

The comments came as Wall Street markets sold off again, giving up much of the gains they had enjoyed a day earlier when Trump announced a 90-day suspension of his plans in relation to most countries.<\/p>\n

Markets on this side of the Atlantic followed up yesterday with London\u2019s FTSE 100 surging by 3 per cent, Germany\u2019s Dax surging 4.5\u00a0per cent and France\u2019s Cac 40 adding 3.8 per cent.\u00a0<\/p>\n

But as traders weighed up the prospect of more uncertainty and a possible recession to come \u2013 with US tariffs of more than 100\u00a0per cent on China still going ahead \u2013 the mood later turned sour on Wall Street.<\/p>\n

The Dow Jones tumbled by 2.5 per cent, the S&P 500 slid nearly 3\u00a0per cent and the tech-heavy Nasdaq lost close to 4 per cent.<\/p>\n

\"Warning: <\/p>\n

Warning: Sarah Breeden, deputy governor at the Bank of England (pictured), said that ‘overall, tariffs are likely to lower UK growth’<\/p>\n

And Breeden made clear that Britain still faces a major hit.<\/p>\n

\u2018If nothing else, the chilling effect of trade policy uncertainty on firms and consumers is clear,\u2019 she said during an online event yesterday. \u2018I would expect tariffs to lower economic activity as barriers to trade inherently weigh on global demand.\u2019<\/p>\n

It is the third warning from the Bank this week about the impact of tariffs.<\/p>\n

Clare Lombardelli, another deputy governor, had previously said they were \u2018likely to depress activity\u2019. And officials on the Bank\u2019s financial policy committee have warned that the trade war had left the world more vulnerable to a financial crisis.<\/p>\n

Trump\u2019s climbdown on tariffs on Wednesday came after a bond market sell-off that saw US borrowing costs surge and pushed yields on 30-year UK bonds to the highest level since 1998.\u00a0<\/p>\n

Bond markets were partly reassured by the 90-day pause but US yields were climbing again last night while the dollar weakened.<\/p>\n

UK borrowing costs fell, however, with yields on benchmark ten-year UK bonds dipping sharply from just below 4.8 per cent to just over 4.6\u00a0per cent and 30-year yields also down from their peaks.<\/p>\n

The Bank yesterday responded to the recent moves by suspending the sale of \u00a3600million of long-dated government bonds that had been due to take place next Monday \u2018in light of recent market volatility\u2019<\/p>\n

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\n Trump turmoil will have a ‘chilling effect’ on UK growth, says deputy Bank of England governor<\/p>\n

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