allowed the MPC to withdraw gradually some degree of policy restraint, while
maintaining Bank Rate in restrictive territory so as to continue to squeeze out
persistent inflationary pressures.
Since the MPC’s previous meeting, global trade policy uncertainty has
intensified, and the United States has made a range of tariff announcements, to
which some governments have responded. Other geopolitical uncertainties have
also increased and indicators of financial market volatility have risen
globally. The German government has announced plans for significant reform to
its fiscal rules.
While UK GDP growth estimates have been slightly stronger than expected at the
time of the February Monetary Policy Report, business survey indicators
generally continue to suggest weakness in growth and particularly in employment
intentions. In recent quarters, subdued activity has been judged to reflect
