Chancellor Rachel Reeves has advised MPs that Financial institution of England governor Andrew Bailey has confirmed that monetary markets are “functioning effectively” and that the UK’s banking system stays resilient, regardless of the escalating world uncertainty attributable to President Trump’s new tariffs.
Talking within the Home of Commons, Reeves took the bizarre step of opening Treasury questions with a brief assertion addressing the worldwide response to the US’s choice to impose sweeping tariffs on international imports. Her feedback echoed Labour chief Keir Starmer’s speech earlier this week, calling for a measured, pragmatic response that retains the UK’s nationwide curiosity at its core.
Reeves emphasised that the federal government was “keeping nothing off the table” by way of potential retaliatory measures, whereas underlining the significance of calm diplomacy.
“The United States’ decision to impose tariffs has had and will continue to have huge implications for the world economy,” Reeves stated. “These implications have been reflected in the reaction that we’ve seen in global markets in recent days, which the financial authorities have of course been monitoring closely.”
She confirmed she had spoken on to Financial institution of England governor Andrew Bailey on Tuesday morning. “He has confirmed that markets are functioning effectively and that our banking system is resilient,” she advised the Commons.
Her reassurances come as world monetary markets proceed to expertise turbulence in response to President Trump’s protectionist measures, which have already prompted retaliation from key US buying and selling companions. The UK authorities, alongside EU leaders, is contemplating its subsequent steps amid mounting strain from enterprise teams anxious about provide chains, export viability, and elevated prices.
The Chancellor’s assertion shall be seen as an try to instil market confidence and reinforce the UK’s place as a secure and dependable economic system amid wider geopolitical uncertainty.
