The equity markets rally that has characterised most of Donald Trump's first two weeks in charge has boosted the UK economy, a senior Bank of England (BoE) governor said on Friday (3 February).

Ben Broadbent, the BoE's deputy governor for monetary policy, said Britain's economy could benefit from some of the US president's economic policies, although he cautioned it was too soon to try and determine the full impact of Trump's decisions.

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"You've seen business confidence rise, particularly in the US, you've seen financial markets get more optimistic, and I think that has had some impact on us," Broadbent told BBC Breakfast.

On 25 January, the Dow Jones Industrial Average surged past an historic 20,000 points mark, on strong earnings data from major constituents and Trump's reaffirmation of his pro-natural resources stance which sent related stocks higher both overnight and in early trading.

Since his inauguration, Trump has told bosses of the car manufacturers he will work to ease environmental regulations and "cut corporate taxes" and has boosted natural resources companies, after he backed the construction of the controversial Keystone XL and Dakota Access pipelines, provided "American steel" is used in both projects.

However, the market rally has recently petered out, as concerns about Trump's reported conflict with allies troubled investors and Broadbent warned caution was required.

"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.

"But 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."

Bank of England