The Bank of England governor has warned ministers that Brexit is hurting Britain's economy and urged them to “rebuild our relationship” with the EU.
Speaking at the Mansion House dinner in the City of London on Thursday night, Andrew Bailey said he would not take a position on Brexit “per se”, but said he would “not take a position on Brexit per se”, but added: I have to point this out,” he added.
He said Brexit was a “weight” on the economy, pointing in particular to the impact of Brexit on Britain's trade in goods. “This highlights why we must be vigilant and welcome the opportunity to rebuild our relationship while respecting the decisions of the British people.”
Bank governors traditionally refrain from delving into controversial political issues, but Mr Bailey's predecessor, Mark Carney, weighed in on the potential economic impact of leaving the EU before the 2016 referendum. I warned you.
Services exports have performed well since the UK left the EU, but some goods exporters, particularly small and medium-sized enterprises, have struggled with so-called “non-tariff barriers” such as customs checks.
Keir Starmer's government has pledged to deepen cooperation with the EU, but Brussels has made clear its reluctance to engage in broader negotiations on the Trade and Cooperation Agreement (TCA).
Labor opposes re-entering the EU's single market or customs union. Instead, the government hopes to win more modest changes, such as mutual recognition of professional qualifications and a veterinary agreement that could reduce the need for inspections on food exports.
The bank president's comments came against the backdrop of President Donald Trump's threat to impose tariffs, or import taxes, on all foreign goods sold into the United States.
Mr. Bailey, who describes himself as a “die-hard old-school free trader”, said he disagreed with this approach.
“My point is that we should remember the importance of openness amidst the critical need to be vigilant against threats to economic security,” he said.
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Experts at the National Institute of Economic and Social Research say Britain's growth rate could fall to a pathological 0.4% next year if President Trump goes ahead with plans to impose a universal 10% tariff on all imports. he warned.
Chancellor Rachel Reeves praised the city in a speech at the same event, the annual gathering of Britain's financial sector, calling it the “crown jewel” of the British economy and saying post-crash regulations had “gone too far”. Ta. far”.
