Bank of England's Clare Lombardelli Warns of Trump's Tariff Risks

Clare Lombardelli of the Bank of England expressed concerns over potential economic risks posed by President-elect Donald Trump's proposed tariffs. She emphasized the unpredictability of these tariffs' impact on economic growth, inflation, and interest rates, noting the importance of monitoring upcoming trade developments closely.

Clare Lombardelli, a key figure at the Bank of England, has highlighted possible economic risks from U.S. President-elect Donald Trump's proposed tariffs, posing potential challenges to growth in the UK and beyond. Her remarks, appearing in the Financial Times, underscore the uncertainty surrounding these trade measures.

Lombardelli advised that while it's early to measure the tariffs' effects, the BoE will focus on trade developments in future discussions, emphasizing that trade barriers, such as tariffs, are generally detrimental. These issues take precedence as Trump announced a 25% tariff on goods from Mexico and Canada.

In addition to trade concerns, Lombardelli also raised alarms about inflation risks, suggesting cautious interest rate adjustments. Despite the BoE's recent rate reductions, inflation pressures in the UK job market necessitate careful assessment, contrasting with more significant rate cuts from other central banks.

(With inputs from agencies.)