BoE/Bailey: In a Fragmented World, the UK Must Keep Trade Open and Stay Close to the EU

Forex - Andrew Bailey, the Governor of the Bank of England (BoE), warned that Brexit has harmed the UK economy and called on ministers to "rebuild relationships" with the EU.

Bailey stated that the commitment to open trade is vital to boost weak investments in the UK and restore productivity growth, alongside the planned release of capital from businesses and pension funds as suggested by Finance Minister Rachel Reeves.

Speaking at the Mansion House dinner, Andrew Bailey remarked that Brexit has created "a weight on the economy," particularly highlighting its impact on the UK's goods trade. "This underscores why we need to be alert to opportunities for rebuilding relationships while respecting the decision of the British public," he stated.

Bailey spoke within the context of Donald Trump's threat to impose tariffs on all foreign goods sold to the US. Identifying himself as "essentially an old-fashioned free trader," Bailey expressed his opposition to such an approach. He emphasized, "What I mean is that in a time when it's crucial to be vigilant against threats to economic security, let's remember the importance of openness."