Economics
BOE Governor Bailey Warns Brexit Will Bring Big Economic Losses
- Central bank chief wades into politically charged issue
- Boris Johnson’s government has hailed trade deal with EU
Andrew Bailey said the deal was broadly in line with what the BOE forecast in November.
Photographer: Simon Dawson/BloombergThis article is for subscribers only.
Bank of England Governor Andrew Bailey risked reigniting the politically charged debate over Brexit by predicting that the trade deal struck with the European Union could end up costing the U.K. economy the equivalent of more than 80 billion pounds ($109 billion).
In his first public comments since Britain completed its withdrawal from the bloc on Dec. 31, Bailey endorsed warnings from the Office for Budget Responsibility, the fiscal watchdog, that gross domestic product will be as much as 4% lower in the long term than it would be had the country remained in the EU.