While testifying before the Lords Economic Affairs Committee on Tuesday, Bank of England (BoE) Governor Andrew Bailey said the impact of trade tariffs on inflation is more ambiguous than the impact on economic growth, per Reuters.
Key quotes
“Big turnaround overnight with the oil price.”
“Very unpredictable where US import tariffs are going to end up.”
“Market volatility in April meant we were looking globally at a difficult situation.”
“Saw a lot of short-term market positioning changes in April.”
“There was no point when there was real stress in markets in April.”
“We are seeing investors reassessing overweight position in US assets.”
“I think we are starting to see labour market softening.”
“Wage settlements are likely to come off.”
“NICS increase for employers seems to be affecting labour market.”
Market reaction
GBP/USD preserves its bullish momentum on Tuesday and was last seen rising 0.7% on the day at 1.3620.
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