Bank of England boss to say UK must ‘rebuild relations’ after Brexit | Global News Avenue

The Bank of England governor later said the UK must “rebuild its relationship” with the EU “while respecting the decision of the British people who voted to leave the EU in 2016”.

Andrew Bailey’s speech to investors at his official residence will be his strongest comments yet on Brexit, saying one of the consequences of Brexit will be weaker trade.

He has previously avoided commenting on the topic due to the BoE’s independence from Westminster politics.

“As a public official I take no position on Brexit per se,” he would say. “But I do have to point out the consequences.”

Bailey said changes in relations with the EU were putting “stress” on the economy.

“The impact on trade appears to be more on the goods side than services… but this highlights why we must be alert to and welcome opportunities to rebuild relations while respecting the decisions of the British people.”

Bailey will also say the UK should not be “solely focused on the impact of Brexit” and warn of the “wider fragmentation of the global economy”.

His Brexit comments went further than his previous comments on the topic. In November last year, he said the decision had “resulted in a less open economy in the UK”.

Assessing the impact of the UK’s decision to leave the EU The impact on the economy has been tricky Take into account the multiple economic shocks in recent years.

The Office for Budget Responsibility and other independent analysts estimate the economy will suffer a 4% hit over 15 years.

Trade in goods, especially food and agricultural exports, is particularly affected by new trade barriers. However, trade in services such as banking performed better than expected.

Government remains opposed to rejoining EUBut British Prime Minister Keir Starmer and some EU politicians say relations could be better.

Spanish Finance Minister Carlos Culpo told the BBC: “We need to be positive about this and optimistic that a better deal can actually be reached in this regard.”

A UK government spokesman said: “We are committed to recalibrating our relationship with our European partners… and improving our trade and investment relationships.”

Mr Bailey’s speech at the residence will be accompanied by a speech from Chancellor Rachel Reeves, who will talk about her plans: Restructuring the UK pension system to boost growth.

She wants council pension pools to be merged so they can make larger investments to generate higher returns, a move criticized by some as risky.

“The UK has been regulating for risk but not for growth,” she said.

The annual event comes as the government faces criticism from all sides Businesses curb growth through tax increasesReeves said this was necessary to “properly fund” public services.

Mr Bailey’s speech will continue with a discussion of the wider UK economy and its lack of growth.

“All in all, it’s not a good story,” he would say, describing how productivity has fallen since the economic collapse of 2008 and has not recovered since.

He will explain that the UK is not the only country facing the problem, which he says affects other parts of Europe as well, but points out that the US has a “better story to tell”.

Mr Bailey will also respond to Reeves’ concerns that the UK pension system is “broken” and needs to be fixed “dramatically”.

Former chancellor Jeremy Hunt said Reeves’ reform proposals ‘very welcome’although shadow chancellor Mel Stride added that the Conservatives would be “paying close attention to the details”.