In recent comments to the UK House of Commons Treasury Select Committee, Sam Woods, Deputy Governor of the Bank of England (BoE), said that the central bank is closely monitoring the impact of US President Donald Trump's newly announced tariffs, warning they could lead to a rise in bad loans among UK lenders.
According to the Financial Times, Woods said that the BoE had increased its oversight during the market volatility triggered by Trump's "liberation day" tariffs. Meanwhile, banks have been increasing provisions for losses and taking other steps to prepare for a downturn. "We are watching [the effect of tariffs] very closely," Woods assured, adding that the central bank is focusing on whether banks will "provide more for a different economic environment."
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