Bank of England Chief Economist Huw Pill said that future interest rate-cuts will depend on the UK economy avoiding “big new disturbances” after the return of Donald Trump to the White House raised the threat of a global trade war.

The new British government unveiled a budget plan that increases outlays more than it raises taxes, which has caused bond yields to tick up over the past week.

The Bank of England has cut its main interest rate by a quarter of a percentage point after inflation across the U.K. fell below its target rate of 2%

The Bank of England is likely to lower interest rates for only the second time this year in a decision that will be overshadowed by the fallout from the UK budget and Donald Trump’s election victory.

The Bank of England is likely to cut interest rates on Thursday for only the second time since 2020 but the big question for investors is whether the BoE sends a signal about its subsequent moves after the government's inflation-raising budget.