Swati Dhingra, an external member of the Bank’s rate-setting monetary policy committee, said Trump imposing a threatened 60% tariff on goods from China sold in the US could lead Chinese exporters to cut their prices elsewhere to ensure they maintained current trade volumes.

“If there is the kind of big 60% type of tariff increase that’s been proposed, that will have repercussions on to world prices, and mostly on the downward direction,” she said.

However, Dhingra said the “textbook” impact of the world’s largest goods importer imposing such a large tariff on products from the world’s biggest exporter would be for global goods prices to fall.

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