Andrew Bailey about why the buying and selling enterprise in Nice Britain won’t finish the uncertainty

The governor of the Bank of England, Andrew Bailey, will take part in the Central Bank press conference in the Bank of England in the city of London on May 8, 2025.

Carlos Jasso | AFP | Getty pictures

The governor of the Bank of England, Andrew Bailey, announced CNBC on Thursday that Britain is attracting more economic uncertainty, even though the country was the first to have a trade agreement with the United States as part of President Donald Trump's controversial tariff regime.

“The tariff and the trading situation have injected more uncertainty into the situation … there is now more uncertainty than in the past,” Bailey told CNBC in an interview.

“In this sense, a trade agreement in Great Britain is very welcome, very welcome. But Britain is a very open economy,” he continued.

This means that the effects of tariffs on the British economy not only assume its own trade relationship with Washington, but also from those of the USA and the rest of the world, he said.

“I hope that what we see on the trading side in Great Britain will be the first of many, and it is repeated by a whole series of trade agreements, but of course we have to see that this naturally happens and where it actually ends.”

“Because of course we deal at tariff levels that are probably higher than before.”

In the monetary policy report by Bank of England published on Thursday, the word “uncertainty” was used 41 times on their 97 pages on 36 times in February, according to a CNBC balance.

The British central bank lowered the interest rates on Thursday by a quarter percent point and took its clothing to 4.25%. The decision was very much divided among the seven members of his monetary policy committee, whereby five for the 25 -basis reduction of the votes, two votes for the attitude of interest rates and two votes for larger 50 basis points.

Bailey said that some analysts had perceived the tariff decision as a Hawkischer than expected – in other words, the increase in interest rates – he was not surprised by the close coordination.

“What it reflects is that there are two sides, here on both sides risks,” he told CNBC.

“We could get a much more serious demand for demand than we expected, which could then get a weaker view of inflation when we expected.”

“On the other hand, there is a risk that we could get a combination of more persistence in the inflation effects that are gradually being processed by the system”, e.g. B. in wages and energy, while “supply capacity is weaker in the economy,” he said.