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Brexit impact on UK economy 'negative for foreseeable future,' Bank of England chief says
Bank of England governor Andrew Bailey links slower UK growth to Brexit-related trade restrictions and policies, with potential growth rate falling from 2.5% to 1.5% over 15 years.
- At a Washington, DC seminar on Saturday, Andrew Bailey warned Brexit will negatively impact the UK's economic growth for the foreseeable future, citing long-term declines.
- Bailey said the slowdown stems from lower productivity growth, an ageing population, trade restrictions and post-Brexit economic policies, referencing the Smithian growth model.
- ONS data show GDP rose 0.1% in August after falling 0.1% in July, with three-month growth increasing to 0.3% from 0.2%.
- With next month's budget, Chancellor Rachel Reeves faces pressure after muted growth and a surprise July contraction, while the International Monetary Fund forecast UK inflation will surge highest in the G7 in 2025 and 2026.
- On longer-term prospects, Bailey said the economy will adjust and urged investment in innovation and AI as the best hope, warning AI may threaten financial stability.
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Brexit will harm UK economy ‘for the foreseeable future’, says Bank of England chief
In yet more evidence of the harmful impact of Brexit, the head of the Bank of England has warned that the decision to leave the EU will damage the UK economy “for the foreseeable future”. In a speech in Washington on Saturday, Governor of the Bank of England, Andrew Bailey said “making an economy less open restricts growth over the long term”. He said: “For nearly a decade, I have been very careful to say that I take no position per se on Brexit…
According to the Governor of the Bank of England, companies can adapt to difficult business conditions over time, but growth remains below its potential.
·Paris, France
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Coverage Details
Total News Sources22
Leaning Left6Leaning Right2Center5Last UpdatedBias Distribution46% Left
Bias Distribution
- 46% of the sources lean Left
46% Left
L 46%
C 39%
15%
Factuality
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