Business confidence rising under Donald Trump says Bank of England expert

Deputy governor of the Bank of England Ben Broadbent, who says Donald Trump's election victory has been marginally positive for the British economy

BANK of England deputy governor Ben Broadbent has said Donald Trump's election victory has been marginally positive for the British economy.

The controversial Mr Trump has pledged to slash taxes, ramp up infrastructure investment and is tipped to tear up regulation put in place following the financial crisis.

"You've seen business confidence rise particularly in the United States. You've seen financial markets get more optimistic and I think that has had some impact on us.

"So far, at the margin, yes, it's been positive for global sentiment, and for that reason, and to that extent, for us as well," Mr Broadbent told the BBC.

Mr Broadbent's comments come a day after the Bank hiked its growth forecast for 2017 and the next two years as the UK continues to shrug off fears of a Brexit vote slowdown.

In its quarterly inflation report, the Bank upped its growth forecast to 2 per cent this year, 1.6 per cent in 2018 and 1.7 per cent in 2019.

Last week in the US, the Dow Jones Industrial Average broke through the psychologically significant 20,000 mark for the first time in its history, boosted by positive sentiment around Mr Trump's economic policies.

But the president has also beaten the drum for a more protectionist US and Mr Broadbent cautioned there remains an unknown element to the Republican leader's policy programme.

"There are other things the US administration has said that people may worry more about, or have done in some markets," he said.

"And I should say overall that... there's a lot we have yet to see about the detailed plans, including those for fiscal policy, for government spending and taxes and so forth, so we'll have to wait and see."


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