MNI BRIEF: BOE Ramsden: Tariffs To Hit Growth, Awaiting Detail

Productivity growth in the UK has been slower than expected and that and there is less spare capacity in the economy, Bank of England Deputy Governor said Friday, adding that US tariffs would push down on global growth.

In a Q and A following his speech at Stellenbosch University Ramsden said that in light of the weak productivity for 2024 "I do give as much weight to the kind of weak supply scenario as I was to the weak demand scenario," with the former scenario pointing to more persistent inflation.

Asked about  US President Donald Trump's latest pronouncement on tariffs, that there would be an additional 10% on Chinese goods and that he would press ahead with 25% tariffs on Mexico and Canada, Ramsden said that these steps had still to be implemented and as a central bank he preferred to analyze actual policy but he was clear about the likely hit to growth. "It will have a negative impact on global growth, and it will have negative impact on UK growth,'  but for inflaiton the various channels left the question open whether it would be inflationary or disinflationary, Ramsden said.