Bank of England policymaker Swati Dhingra said on Thursday that high US import tariffs are impacting UK economic growth and will likely put downward pressure on inflation in the medium term.
Speaking at a research conference hosted by the Central Bank of Ireland, Dhingra explained that the tariffs primarily affect the UK through weak demand.
"In my view, the main transmission channel for tariffs to the UK in 2025 is through weak demand, with tariffs acting as a drag on global growth," Dhingra said.
She added that the trade disruption caused by these tariffs "means lower overall growth—and some downward pressure on prices in the medium term."
Dhingra, who has consistently called for an acceleration of the Bank of England's interest rate cuts, also warned of the potential long-term inflation problems that could arise from maintaining excessively high interest rates. She noted that high rates could limit investment in new production capacity and hinder productivity improvements
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