BoE Deputy Governor Worries About Economic Recovery

Bank of England (BoE) Deputy Governor for Markets and Banking, Dave Ramsden, has raised concerns regarding the British economy's ability to recover its productivity and supply levels. The ongoing uncertainty surrounding United States President Donald Trump's tariff policy is cited as a significant factor.

Split Vote on Bank Rate Decision

Discussing the BoE's recent split vote on adjusting the bank rate, Ramsden mentioned his tendency to align with the majority. He highlighted the challenges in forecasting all potential outcomes in the current economic climate, particularly those that could exacerbate inflation.

Impact on Business Investments

Ramsden pointed out that business investments, a crucial component of GDP growth, are likely to be the most affected by the prevailing uncertainties.

Governor's Optimistic Outlook

Despite these concerns, Governor Andrew Bailey remains optimistic, suggesting that the forecast is "not doom and gloom" and that Britain might fare better than some other countries in the face of potential tariffs.