Bank of England member: It is still unclear how Trump's tariffs will affect the British economy.

During her remarks on Thursday evening, Bank of England monetary policy maker Megan Greene stated that it remains unclear whether the higher American tariffs that are set to be imposed by President-elect Donald Trump after he takes office in January will lead to an increase or decrease in inflation in the UK.

Additionally, Greene's comments included the following points:

• We do not know exactly what these tariffs may look like, and we cannot even determine the direction that the tariffs will push inflation, particularly in the UK as well as in the Eurozone to some extent.
• Looking specifically at the structure of the mortgage market in the UK, I believe that consumption will take some time to recover.
• In my view, consumption will take some time to recover even with falling prices, solely due to the fixed terms of mortgages in the UK.
• I believe there may be weak consumption for a period of time in the UK, as well as across Europe, at a time when American consumers seem to see no limits to spending.
• Inflation in the service sector, in particular, has remained stubbornly high despite tight monetary policy.
• High inflation in services is largely supported by wage growth.
• Wage growth has also slowed, but not at the pace I would have preferred.