Bank of England governor Mark Carney warned that a trade war could “shipwreck” the global economy.
Speaking in Bournemouth today Carney said financial markets had recently experienced a “profound transformation” driven by growing concerns over the impact of rising trade tensions and policy uncertainty.
However, he added that a global trade war and a no-deal Brexit were possibilities but not yet certainties.
He said: “As I have sought to illustrate, whether current trade tensions shipwreck the global economy or prove to be a tempest in a teacup will have an important influence on the outlook for growth and inflation in the UK.”
Carney’s comments come days after US president Donald Trump and his Chinese counterpart Xi Jinping agreed a trade war truce and announced the world’s two largest economies would reopen negotiations.
“The news at the weekend that the US and China agreed to restart trade talks is welcome – through as we have learned, progress today is no guarantee of progress tomorrow,” the central bank governor added. [...]
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