UK (Parliament Politics Magazine) – Rachel Reeves seeks to ease US-UK trade strains during her Washington visit, while the ECB cuts rates in response to Trump’s aggressive tariff hikes.
Chancellor Rachel Reeves plans to visit Washington next week for UK-US trade discussions, despite Donald Trump playing down chances of an early deal.
Rachel Reeves takes on UK-US trade talks
Ms Reeves aims for a trade agreement to mitigate the impact of Trump’s 10% tariffs on all goods entering the US.
She said,
“Those conversations with our US counterparts are ongoing. I will be in Washington next week for the International Monetary Fund annual meetings, their spring meetings.”
The Chancellor added,
“I will also be having conversations with the US administration whilst I’m there.”
ECB cut interest rates amid Trump’s trade policies
The European Central Bank reduced interest rates for the seventh time since June, citing worries over President Trump’s effect on economic growth.
The ECB lowered its interest rate to 2.25%, marking its most aggressive monetary policy easing in response to economic pressures.
The move comes after Trump’s 20% tariff on the EU, double the rate applied to the UK, accusing the bloc of exploiting the US for years.
ECB governing council stance on economic growth
The ECB’s governing council stated,
“The euro area economy has been building up some resilience against global shocks, but the growth outlook has deteriorated owing to rising trade tensions.”
It added,
“Increased uncertainty is likely to reduce confidence among households and firms, and the adverse and volatile market response to the trade tensions is likely to have a tightening impact on financing conditions.”
IMF’s views on global growth projections amid US tariffs
The International Monetary Fund plans to lower its global growth outlook for this year. Despite this, the IMF does not predict a recession for the global economy due to the impact of US tariffs.
Kristalina Georgieva, Managing Director of the IMF, stated that global growth prospects would decline and inflation would rise after Trump’s move to impose record tariffs on China. She also warned of escalating financial market stress from US protectionism.
Rachel Reeves views on the latest inflation figures
The UK’s inflation rate fell to 2.6% in March, marking a slight slowdown in price increases.
Addressing the latest inflation figures, chancellor Rachel Reeves said,
“Inflation falling for two months in a row, wages growing faster than prices, and positive growth figures are encouraging signs that our plan for change is working, but there is more to be done. I know many families are still struggling with the cost of living and this is an anxious time because of a changing world.”
She added,
“That is why the government has boosted pay for three million people by increasing the minimum wage, frozen fuel duty and begun rolling out free breakfast clubs in primary schools.”
Rachel Reeves stance on UK’s plan to nationalise British Steel
Rachel Reeves stated,
“I’ve had the opportunity to talk to the British management team, workers and the three different trade unions represented here to talk about the future.”
She added,
“We now have that control. We’re bringing in those raw materials, and I am certain – and the workers and the management team are certain – that there is a bright future for the steelworks here in Scunthorpe, and the whole community.”
IMF’s spring meetings
The IMF’s Spring Meetings for 2024 will take place from April 15 to April 20, 2024, in Washington, DC, US. The discussions will be held at the IMF headquarters.
Key events included:
- IMF-World Bank Spring Meetings – Talks on global economic outlook, financial stability, and development.
- IMF World Economic Outlook Report Release – Updated economic forecasts.
- G20 Finance Ministers & Central Bank Governors Meetings – Held alongside the Spring Meetings.