(Reuters) – The governor of the Bank of England (BOE), Andrew Bailey, said on Tuesday that he maintained a “gradual and prudent” approach to the reduction in interest rates, while the turbulence of the global trade policy are increasingly darkening the prospects.

Last month, the BOE reduced its interest rates to 4.25% during a three -voice vote. It has invoked “increased unpredictability” with fluctuation markets due to the rapid development of the American president Donald Trump.

“I think that the trajectory (interest rates) remains downward oriented, but the extent and speed of this decrease are now surrounded by much more uncertainty,” Andrew Bailey told the British parliament Treasury Commission.

Andrew Bailey said that the fragmentation of the global trade system was bad for economic growth and that it would delay investment decisions for companies in Great Britain.

“Progressivity and prudence remain my (…) guideline,” said Andrew Bailey about his thinking about future rate drops, adding that he would not say on his intentions for the Monetary Policy Committee (MPC) in June.

Assistant governor Sarah Breeden, considered centrist in the monetary policy committee, told legislators that she thought it was justified to reduce interest rates last month, even in the absence of disturbances in world trade.

Sarah Breeden was one of the majority of the five members who voted in favor of a drop in interest rates of a quarter of a point last month, with the governor.

However, Andrew Bailey said he was more undecided than Sarah Breeden before the interest rates of May.

“It is necessary to consider that the majority is made up of a wide spectrum of opinions,” said the assistant governor.

Official data has shown that the British economy has experienced strong growth in the first quarter of the year, unlike the pessimistic data in business surveys.

Andrew Bailey said it revealed an “inconsistency” between data sources, which accentuated the uncertainty that political decision -makers face.

“Surveys are probably, on average, a better indicator of the future than the immediately previous GDP figures,” said the Governor of the BOE.

The BOE said last month that it expected the strong growth recorded between January and March to be temporary, with production that should increase by 1% this year, and then accelerate slightly and reach 1.5% in 2027.

(David Milliken and Suban Abdulla, with Muvija M, Mara Vîlcu for the , edited by Augustin Turpin)

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