England Bank reduces the main interest rate despite the customs storm

On Thursday, the Central Bank of England reduced the main interest rate by a quarter of a percentage point to 4.25 %, as American customs duties would lead to a slowdown in inflation in a decision made before announcing an agreement in this regard between Washington and London.
“The inflationary pressure continued to decline, so it was possible to reduce the rates again today,” bank ruler Andrew Bailey said in a statement attached to the report on monetary policy.

A foggy vision

He pointed out that “recent weeks have shown to what extent may be the state of the global economy that is not predictable,” which leads the bank to adopt “a gradual and cautious approach to any future new discounts.”
Similar to what the European Central Bank did in April, the Bank of England decided to reduce the main interest rate by 0.25 points, by a slight difference in the votes of the members of the Monetary Policy Committee.
This option contradicts that by the American Federal Reserve, who was expected, on Wednesday, to keep the rates within a margin ranged between 4.25 % and 4.50 %, in light of the blurring of the economic scene in the United States as a result of the customs storm raised by Donald Trump.
The US administration imposed a 10 % customs duties on British imports, its second trading partner after the European Union, whose economy suffers from stagnation.