Deputy Governor of the Bank of England for Financial Stability Sarah Breeden stated on Thursday that it is "too early" to asses the overall impact of tariffs initiated by the United States on inflation in the United Kingdom.
The latest tariff-related developments have a "material impact on economic outlook and risks," she said. She observed that the sterling has so far not weakened but noted that it "could change."
Additionally, she called US President Donald Trump's tariffs the "biggest change to trade policy in a century." Lastly, Breeden stressed that the UK's banking system will retain sufficient capacity to support the economy even if the "conditions worsen substantially."
