LONDON (Reuters) – The Bank of England may not need to take action if a fragmentation in global trade caused by potential U.S. trade tariffs and other countries’ retaliation is “orderly”, BoE policymaker Swati Dhingra said on Wednesday.

Dhingra, in a speech delivered to the National Institute of Economic and Social Research, said higher U.S. tariffs would have some upward effect on British inflation through a weaker sterling and higher import prices. But this impact could well be cancelled out by slower global growth.

“If the world economy fragments in an orderly way, monetary policy would likely not need to respond while the world economy transitions and prices re-adjust to reflect the new geopolitical developments,” she said.

(Reporting by David Milliken; editing by Suban Abdulla)