Brexit has damaged the UK economy and the government should build closer relations with the European Union, the governor of the Bank of England has said.
Andrew Bailey said there had clearly been “consequences” as a result of the 2016 vote to quit the EU.
Speaking at Mansion House in London last night, Bailey said he had “no position on Brexit per se”.
“But I do have to point out the consequences,” he said. “The changing trading relationship with the EU has weighed on the level of potential supply.
“The impact on trade seems to be more in goods than services, that is not particularly surprising to my mind.
“But it underlines why we must be alert to and welcome opportunities to rebuild relations while respecting the decision of the British people.”
“The picture is now clouded by the impact of geopolitical shocks and the broader fragmentation of the world economy,” he added.
Bailey’s comments will be welcomed by the government, which is looking to improve trade with the EU and making changes to the deal struck with the bloc by the last Tory government.
