Bank of England Doves Focus on Trump Effect That Hasn’t Yet Hit

Bank of England rate-setter Swati Dhingra said US tariffs will drive down growth and inflation, as the impact of Donald Trump’s trade war becomes a key dividing line between hawks and doves on Threadneedle Street.

Dhingra said the fragmentation of global trade is likely to ease price pressures even though data is yet to show any major rerouting of goods necessary to lower UK inflation.

“I would expect orderly fragmentation with some reduction in international diversification – this means lower overall growth – and some downward pressure on prices in the medium term,” she said during a speech at ...