Published by Global Banking & Finance Review®
Posted on April 8, 2025
1 min readLast updated: January 24, 2026
BoE's Clare Lombardelli states it's premature to judge US tariffs' inflation impact on the UK, with a focus on the May interest rate decision.
LONDON (Reuters) - Bank of England Deputy Governor Clare Lombardelli said on Tuesday that it was still too soon to judge the inflation impact for Britain of U.S. President Donald Trump's tariffs amid ongoing responses from other countries.
Growth was likely to be hurt by tariffs, while the BoE would look more closely at the inflation impact in the run-up to its May 8 interest rate decision, Lombardelli told a panel discussion hosted by the Resolution Foundation think tank.
"On inflation, it depends a lot more on the circumstances of actually how other countries respond, how that feeds through to the UK," she said. "But we'll think about all that together for our next decision in May. I'll not take a position on that now."
Financial markets think a quarter-point rate cut is a near certainty for the BoE in May and expect three rate cuts between now and the end of 2025, about one more than before last week's tariff announcements.
(Reporting by David Milliken; Editing by Catarina Demony)
The main topic is the Bank of England's perspective on the inflation impact of US tariffs on the UK.
Clare Lombardelli mentioned it's too early to determine the inflation impact of US tariffs on the UK.
Financial markets expect a quarter-point rate cut in May and three cuts by the end of 2025.
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