Bank of England Governor Andrew Bailey has warned that Brexit has weakened UK trading opportunities and that the country needed to commit to free trade in the future.
Speaking at a Central Bank of Ireland conference held in Dublin, Mr Bailey said the world economy has experienced “big external shocks” such as the Covid-19 pandemic and Russia’s invasion of Ukraine.
Mr Bailey that there was an issue “which relates to events nearer to home” which has also contributed to “fragmentation in the world economy.”
He said: “As a public official, I take no position on Brexit per se. That was a decision for the people of the UK. It has led to a reduction in the openness of the UK economy, though over time new trading relationships around the world should, and I expect will, be established.
“Of course, that requires a commitment to openness and free trade.”
Mr Bailey’s comments are unlikely to be welcomed in Westminster as the government seeks to convince the country of the benefit of free trade deals made since Britain left the EU.
Recent trade deals have been made with Australia, New Zealand, Norway, Iceland and Lichtenstein, but agreements with larger economies such as India and the US have not yet been forthcoming.
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