Bank of England (BoE) Governor Andrew Bailey took the time to fire a quiet shot across the bow of the United States (US), particularly the Trump administration’s whiplash tariff and trade policies that change on a nearly-daily basis, noting that countries with high deficits will be the first to experience market pain as financial stability falls.
Bailey also shot back at the US over its newfound criticism of the International Monetary Fund (IMF), reminding listeners that the IMF is crucial for addressing global imbalances. Bailey also encouraged China to boost its domestic demand and move away from its reliance on trade with the US.
Key highlights
- Multilateral institutions are essential for good policymaking.
- We are following financial stability risks closely.
- Countries with big deficits typically come under the most financial market pressure.
- I am yet to be convinced about the need for a retail central bank digital currency.