Monetary policy action alone is not well-suited to address system price shocks in key sectors such as energy and food.

If the world economy fragments in an orderly way, monetary policy would likely not need to respond.

In a world where external supply shocks become more prevalent, an independent monetary authority with a clear inflation target is essential.

Higher US tariffs likely to cause a strengthening of the US Dollar in the short term would have some price-increasing effects in the UK.

On the overall impact on inflation in the UK from US tariffs, the direct effect of US import costs and US Dollar strengthening are likely to be offset by reduced global price pressures.