LONDON, July 9 (Xinhua) -- The Bank of England (BoE) warned Wednesday that the global economy faces rising downside risks, citing escalating U.S. tariffs.
In its latest Financial Stability Report, Britain's central bank highlighted that tariff hikes, particularly by the U.S., are dampening global demand and weighing on business investment decisions.
Disruptions to global supply chains and geopolitical tensions are also exacerbating uncertainty around inflation, it added.
In Britain, sectors such as manufacturing which are heavily reliant on U.S. demand are especially exposed, with analysts warning that falling global consumption and rising production costs could affect British companies' profitability.
Noting that a new trade agreement between Britain and the U.S. in May has brought some relief, the report cautions that a further escalation in trade disputes globally could amplify financial stress and drag on economic growth.
