Lower Inflation Expected in Britain Amid Tariffs

(Reuters) – Britain is more likely to see lower rather than higher inflation due to U.S. President Donald Trump’s tariffs, according to Bank of England policymaker Megan Greene.

Greene expressed more concern about persistent inflation pressures compared to some colleagues on the Monetary Policy Committee. She stated that Britain’s lack of reciprocal tariffs would probably make it a destination for cheaper goods from Asia and the European Union.

> “The tariffs actually represent more of a disinflationary risk than an inflationary risk,” Greene told Bloomberg TV.

Despite this, she remains worried about domestic inflation pressures due to inadequate supply capacity, which has influenced her cautious stance on rate cuts so far.

The upcoming BoE interest rate announcement is scheduled for May 8. As of Tuesday, financial markets anticipated a 100% chance of a rate cut, amid rising recession fears following Trump’s tariffs.

In response to concerns about the independence of the U.S. Federal Reserve, after Trump’s criticism of its chair Jerome Powell, Greene stated, “Credibility is the currency of central banks and independence is quite important to that.”