US tariffs to slow UK economy, lower inflation, BoE's Dhingra says

LONDON (Reuters) -Higher U.S. tariffs on imports are weighing on growth in Britain and are likely to lead to downward pressures on British inflation over the medium term, Bank of England policymaker Swati Dhingra said on Thursday.

"In my view, the primary transmission channel of tariffs to the UK in 2025 come through weaker demand, as tariffs act as a drag on global growth," Dhingra said in a speech to a research conference hosted by Ireland's central bank.

The disruption to trade from tariffs "means lower overall growth – and some downward pressure on prices in the medium term," she added.

Dhingra - who has voted for a faster pace of BoE rate cuts - also said excessively high interest rates could cause longer-term inflation problems by limiting investment in new production capacity and improvements in productivity.

(Reporting by David Milliken; editing by Suban Abdulla)