UK-US trade deal still leaves Britain facing high tariffs, says BoE governor

The Bank of England’s governor, Andrew Bailey, stated that while Britain’s recent trade deal with the US is positive, it still results in a higher effective tariff rate compared to pre-Trump levels, causing uncertainty for British businesses. He emphasized that the UK economy’s outlook is heavily influenced by global trade agreements, predicting a 0.3% decrease in GDP over three years due to ongoing trade tensions. The BoE recently reduced its interest rate to 4.25% amid concerns about investment delays caused by trade uncertainties, although Bailey noted inflation is mainly driven by domestic factors.