Bank of England Deputy Governor Clare Lombardelli has made it clear that she is cautious about another interest rate reduction until she sees more evidence of cooling price pressures. In a recent statement, Lombardelli emphasized the need for gradual changes in policy and highlighted the potential risks posed by US trade tariffs on economic growth. Here are some key quotes from her recent remarks:
### Key Quotes
– “It depends on what we see in the data.”
– “For me, gradual means we will need to see more evidence of this disinflation process continuing before we can continue to ease policy.”
– “US trade tariffs would pose a risk to economic growth.”
– “Trade barriers certainly are negative for growth in the short, medium, and long term.”
– “Too early to quantify effects of proposed tariffs.”
– “Would discuss trade developments in upcoming meetings.”
### Market Reaction
At the time of writing, GBP/USD is trading 0.12% higher on the day at 1.2573.
The cautious approach taken by Lombardelli reflects the Bank of England’s stance on monetary policy and its commitment to monitoring economic indicators before making any significant changes. It is essential to consider the potential impact of external factors, such as trade tariffs, on the economy and financial markets. By staying informed and aware of these developments, investors can make more informed decisions and navigate the ever-changing landscape of global finance.