Created
: 2025.06.24
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
Bailey speech: Trade tariff impact on inflation is more ambiguous than impact on economic growth
World FX news
Breaking news
Bailey speech: Trade tariff impact on inflation is more ambiguous than impact on economic growth
New
2025.06.24 23:17
2025.06.24 23:17
2025.06.24 23:17
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."
Market reaction
GBP/USD preserves its bullish momentum on Tuesday and was last seen rising 0.7% on the day at 1.3620.
BoE FAQs
The Bank of England (BoE) decides monetary policy for the United Kingdom. Its primary goal is to achieve 'price stability', or a steady inflation rate of 2%. Its tool for achieving this is via the adjustment of base lending rates. The BoE sets the rate at which it lends to commercial banks and banks lend to each other, determining the level of interest rates in the economy overall. This also impacts the value of the Pound Sterling (GBP).
When inflation is above the Bank of England's target it responds by raising interest rates, making it more expensive for people and businesses to access credit. This is positive for the Pound Sterling because higher interest rates make the UK a more attractive place for global investors to park their money. When inflation falls below target, it is a sign economic growth is slowing, and the BoE will consider lowering interest rates to cheapen credit in the hope businesses will borrow to invest in growth-generating projects - a negative for the Pound Sterling.
In extreme situations, the Bank of England can enact a policy called Quantitative Easing (QE). QE is the process by which the BoE substantially increases the flow of credit in a stuck financial system. QE is a last resort policy when lowering interest rates will not achieve the necessary result. The process of QE involves the BoE printing money to buy assets - usually government or AAA-rated corporate bonds - from banks and other financial institutions. QE usually results in a weaker Pound Sterling.
Quantitative tightening (QT) is the reverse of QE, enacted when the economy is strengthening and inflation starts rising. Whilst in QE the Bank of England (BoE) purchases government and corporate bonds from financial institutions to encourage them to lend; in QT, the BoE stops buying more bonds, and stops reinvesting the principal maturing on the bonds it already holds. It is usually positive for the Pound Sterling.
Last updated
: 2025.06.24
Related articles
USD/CAD approaches multi-week lows at 1.3670 amid growing trade uncertainty
2025.07.22 20:46USD/JPY is consolidating recovery from range low - Scotiabank
2025.07.22 20:29GBP: Markets look through BoE Gov. Bailey comments on debt & curve - Scotiabank
2025.07.22 20:26EUR is well supported for the time being - Scotiabank
2025.07.22 20:25CAD stead to slightly firmer on USD - Scotiabank
2025.07.22 20:20USD sentiment slips on tariff, Fed focus - Scotiabank
2025.07.22 20:19
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
Saudi Arabia exported more crude Oil and Oil products in May - Commerzbank
Saudi Arabia exported just under 6.2 million barrels of crude Oil per day in May, according to data from the Joint Official Data Initiative (JODI), Commerzbank's commodity analyst Carsten Fritsch notes.
New
2025.07.22 21:19China imports significantly more (Iranian) Oil from Malaysia - Commerzbank
China published detailed data on crude Oil imports in June on Monday. Of the total 49.9 million tons, Russia accounted for 8.35 million tons and Saudi Arabia for 7.9 million tons, Commerzbank's commodity analyst Carsten Fritsch notes.
New
2025.07.22 21:17Gold stalls despite elevated trade tensions and rising concerns over Fed independence
Gold (XAU/USD) is edging lower after a sharp rally on Monday. Trade tensions and concerns about the Federal Reserve's (Fed) independence continue to lend support through safe-haven demand.
New
2025.07.22 21:14Gold Price Forecast: XAU/USD strives to break above $3,400 amid US-EU trade tensions
Gold price (XAU/USD) ticks down to near $3,385 during the European trading session on Tuesday. Still, the precious metal trades close to an over-a-month high around $3,400. The yellow metal is broadly firm as trade tensions between the United States (US) and the European Union (EU) have escalated.
New
2025.07.22 20:53USD/CAD approaches multi-week lows at 1.3670 amid growing trade uncertainty
Later
New
2025.07.22 20:46USD/JPY is consolidating recovery from range low - Scotiabank
The Japanese Yen (JPY) is also trading flat against the US Dollar (USD) and consolidating its recent recovery from the lower end of its recent range, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
2025.07.22 20:29GBP: Markets look through BoE Gov. Bailey comments on debt & curve - Scotiabank
The Pound Sterling (GBP) is entering Tuesday's NA session flat against the US Dollar (USD) and also showing its first signs of meaningful strength following the pullback from its July 1 high, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
2025.07.22 20:26EUR is well supported for the time being - Scotiabank
The Euro (EUR) is up marginally against the US Dollar (USD) and looking well supported as it seeks to extend its latest recovery following the pullback from its July 1 high, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
2025.07.22 20:25Contradictory signals on the Platinum market - Commerzbank
The largest Palladium producer from Russia has slightly lowered its production forecast for Palladium this year, Commerzbank's commodity analyst Carsten Fritsch notes.
New
2025.07.22 20:22CAD stead to slightly firmer on USD - Scotiabank
The Canadian Dollar (CAD) is a marginal outperformer versus the US Dollar (USD) on the session, with spot edging just under yesterday's low in early trade here, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
New
2025.07.22 20:20Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
