MX exports decreased by 0.4% and imports increased by 1.4% at an annual rate, in May 2025

There is a lot going on in the world around us. Escalation of the conflict in the Middle East drove up energy prices in the past few weeks but in the last few days they have come back down again. Global trade policies remain unpredictable. These are things that weigh on the global economy. Elevated global uncertainty affects UK businesses too. We have heard that clearly through the Bank’s Agents – and I have heard it when I talk to business leaders from across the country. Expectations for export sales have softened, investment decisions have been delayed, and supply chains adjusted – though on investment the messages delivered by the Prime Minister from this stage a few hours ago are positive and welcome news. While I am on the subject of world developments, I visited Kyiv last Friday at the invitation of the Ukrainian National Bank. The experience was humbling. The moral case is clear: as a nation, Ukraine has the right to determine its own future. And that is what Russia does not accept. I strongly agree with successive UK Governments that we must give our full support to Ukraine on this. The strands of history run deep here, and it is our security that is at stake too. The moral argument is unassailable. BoE Gov. Bailey: Monetary policy needs to continue to remain restrictive for sufficiently long until the risks to inflation returning sustainably to the 2% target in the medium term has dissipated further. BoE Gov. Bailey: Interest rates remain on a gradual downward path.