The Bank of England (BoE) noted in the Financial Policy Committee's (FPC) report published on Wednesday that the global economic uncertainty "intensified" as the tariffs United States President Donald Trump imposed on other countries and specific industries decreased the prices of global equities, risky corporate credit, and commodities.

The BoE warned that, due to those circumstances, the risks to inflation have increased. It projected that inflation in the United Kingdom will hit 3.75% in the third quarter of 2025. The bank also predicted that the Monetary Policy Committee (MPC) will slash the key interest rate by around 75 basis points by the end of the year.

The FPC also estimated that the UK's banking system "has the capacity to support households and businesses, even if economic and financial conditions were to be substantially worse than expected."