The pound-euro (GBP/EUR) exchange rate is rising for a second straight day.
The BoE left interest rates unchanged at 4.5% and warned of rising uncertainties owing to Trump’s trade tariffs as well as domestic uncertainties as well. UK inflation is rising, and growth is falling.
BoE Governor Andrew Bailey pointed to a cautious approach and gradual rate cuts across the year.
The EUR is falling after ECB President Lagarde warned about the impact of the US trade war on the economy. Lagarde saw a 0.3% hit to GDP, which could worsen to a 0.5% hit if retaliatory measures are taken.