Overview

• Bank of England Governor Andrew Bailey emphasized that global trade fragmentation poses significant risks to economic growth, particularly for the UK’s open economy.
• The Bank is analyzing the potential impacts of US tariff plans ahead of its upcoming rate-setting meeting in May.
• The International Monetary Fund has downgraded its 2025 global growth forecast by 0.5 percentage points, with the UK’s growth projection reduced to 1.1%.
• Bailey also noted that weak productivity growth since the 2008 financial crisis continues to pressure the UK economy.
• Chancellor Rachel Reeves stated that the US is eager to negotiate a trade deal with the UK, with discussions ongoing in Washington.