Bank of England Governor notes diminished economic openness in the UK post-Brexit

09 Nov, 2023

Bank of England Governor notes diminished economic openness in the UK post-Brexit

The Bank of England Governor calls for enhanced collaboration on financial rule-making, noting Brexit's impact on the "openness of the UK economy." Speaking in Dublin, Andrew Bailey emphasizes the need for strong regulations based on international agreements, dismissing calls for a separate rulebook. He expresses optimism for new global trading relationships but stresses the commitment to openness and free trade. Bailey advocates close regulatory cooperation with Irish counterparts to mitigate financial market fragmentation after Brexit. On the UK economy, he expects inflation to align with the 2% target within two years but suggests prolonged elevated interest rates for its realization. Chief economist Huw Pill hints at a potential rate cut in mid-2024, emphasizing the need for flexibility in response to changing economic conditions.