Brexit impact will be negative 'for the foreseeable future,' Bank of England governor warns
Briefly

Brexit impact will be negative 'for the foreseeable future,' Bank of England governor warns
""It's my job as a public official to implement the decision taken by the people of the UK," he said. "But if you ask me what the impact is on economic growth, I do have to answer that question - and the answer is that, for the foreseeable future, it is negative." "Over the longer term," he added, "there should be a positive, albeit partial, counterbalance as the economy adjusts.""
""Make an economy less open and it will restrict growth," he said. "Though over a longer time, trade will adjust and rebuild - and this appears to be what has happened.""
""The same argument holds for the world economy and tariffs," Bailey said."
Brexit has reduced the openness of the British economy, restricting growth potential by weighing on output, productivity and trade. Trade and business activity have adapted to new trading conditions, but the net effect on growth remains negative for the foreseeable future. Over a longer horizon, trade is expected to adjust and partly rebuild, providing a limited positive counterbalance as the economy adjusts. The experience is comparable to global trade tensions and new tariffs, which also constrain openness and growth. Ongoing inflationary pressures and subdued growth complicate decisions on the timing of potential interest-rate cuts, while fiscal constraints shape the upcoming budget.
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