Investing.com -- Bank of England (BoE) Deputy Governor Clare Lombardelli stated on Tuesday that it’s still too early to assess the inflation impact on Britain from U.S. President Donald Trump’s tariffs, as responses from other nations are still ongoing.

Lombardelli indicated that tariffs are likely to negatively affect growth, while the BoE will delve deeper into the inflation impact in the lead-up to its interest rate decision on May 8. She shared these views during a panel discussion organized by the Resolution Foundation think tank.

The Deputy Governor stated, "On inflation, it depends a lot more on the circumstances of actually how other countries respond, how that feeds through to the UK. But we’ll think about all that together for our next decision in May. I’ll not take a position on that now."

Financial markets are currently predicting a quarter-point rate cut as highly likely for the BoE in May. Furthermore, they anticipate three rate cuts between now and the end of 2025, which is one more than the predictions made before the tariff announcements last week.

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