Brexit, Truss Are Part of Long Sterling Decline, BOE’s Mann Says

Brexit and former Prime Minister Liz Truss made the UK a less-competitive, slower-growing economy that faces a greater risk of inflation, Bank of England policymaker Catherine Mann said.

The UK’s vote to leave the European Union in 2016 was one step in a long “erosion” of sterling as a global currency that began in the 1920s and continued through to Truss’s mini-budget crash in 2022, Mann said at a National Association for Business Economics conference on monetary policy divergence and currency wars in Philadelphia Monday.