Overview
- Testifying to Parliament’s Treasury Committee, Andrew Bailey said the Bank must be “very alert” to the financial-stability consequences of rising geopolitical tensions.
- He said market moves have been more muted than feared, which he stressed does not provide assurance on stability.
- Bailey noted that global economic growth looks a lot more stable than the Bank previously expected.
- Trump has threatened a 10% tariff on all products next month rising to 25% from June 1 until Washington reaches a deal to purchase Greenland.
- Stocks fell as investors assessed the threats, with the FTSE 100 down about 1.2% after the open and Germany’s Dax and France’s Cac 40 also lower, while gold topped £3,500 an ounce and the dollar eased slightly against the euro and the pound.