{"id":164450,"date":"2025-06-07T01:49:18","date_gmt":"2025-06-07T01:49:18","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/164450\/"},"modified":"2025-06-07T01:49:18","modified_gmt":"2025-06-07T01:49:18","slug":"bank-of-england-governor-says-brexit-has-undermined-uk-economy-andrew-bailey","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/164450\/","title":{"rendered":"Bank of England governor says Brexit has undermined UK economy | Andrew Bailey"},"content":{"rendered":"

The Bank of England<\/a> governor has urged ministers to \u201crebuild relations\u201d with the EU, warning that Brexit has undermined the UK\u2019s economy.<\/p>\n

Speaking at the Mansion House dinner in the City of London on Thursday evening, Andrew Bailey<\/a> said he took no position on Brexit \u201cper se\u201d, but added: \u201cI do have to point out consequences.\u201d<\/p>\n

He said Brexit had \u201cweighed\u201d on the economy, pointing out in particular the impact of Brexit on the UK\u2019s trade in goods. \u201cIt underlines why we must be alert to and welcome opportunities to rebuild relations while respecting the decision of the British people,\u201d he added.<\/p>\n

Bank governors traditionally refrain from wading into contentious political issues, but Bailey\u2019s predecessor, Mark Carney, did warn about the potential economic impacts of Brexit before the referendum in 2016.<\/p>\n

Services exports have performed strongly since the UK left the EU, but some goods exporters, especially smaller firms, have struggled with so-called \u201cnon-tariff barriers\u201d such as customs checks.<\/p>\n

Keir Starmer\u2019s government has pledged to deepen cooperation with the EU, though Brussels has made clear it is unwilling to hold wide-ranging negotiations on the trade and cooperation agreement (TCA).<\/p>\n

Labour is opposed to re-entering the EU\u2019s 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 alleviate the need for checks on food exports.<\/p>\n

The Bank\u2019s governor was speaking against the backdrop of Donald Trump\u2019s threat of imposing tariffs \u2013 import taxes \u2013 on all foreign goods sold to the US.<\/p>\n

Bailey said he was opposed to this approach, calling himself \u201can old-fashioned free trader at heart\u201d.<\/p>\n

\u201cMy point is this: amidst the important need to be alert to threats to economic security, let\u2019s please remember the importance of openness,\u201d he said.<\/p>\n

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Experts at the National Institute of Economic and Social Research have warned that if Trump goes ahead with his plan for a universal tariff of 10% on all imports, it could cut the UK\u2019s growth rate next year to a sickly 0.4%.<\/p>\n

The chancellor, Rachel Reeves, used her speech at the same event \u2013 an annual gathering of the UK\u2019s financial sector \u2013 to praise the City, calling it the \u201ccrown jewel\u201d of the UK\u2019s economy, and saying post-crash regulation had \u201cgone too far\u201d.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"The Bank of England governor has urged ministers to \u201crebuild relations\u201d with the EU, warning that Brexit has…\n","protected":false},"author":2,"featured_media":164451,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5226],"tags":[802,748,2000,299,5187,1699,4884,16,15],"class_list":{"0":"post-164450","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-brexit","8":"tag-brexit","9":"tag-britain","10":"tag-eu","11":"tag-europe","12":"tag-european","13":"tag-european-union","14":"tag-great-britain","15":"tag-uk","16":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114639573489900408","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/164450","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=164450"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/164450\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/164451"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=164450"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=164450"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=164450"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}