Andrew Bailey on Brexit

Andrew Bailey, in his capacity as Governor of the Bank of England, maintains that Brexit has imposed a negative impact on the UK’s economic growth "for the foreseeable future." He consistently points to the changing trade relationship with the European Union as a factor that has weighed on the level of potential supply in the economy, noting that the effect seems greater on goods trade than services. While he asserts that as a public official he takes no position on Brexit itself, he strongly advocates for actions that minimize these negative economic consequences, framing them as objective observations on supply-side efficiency.

He has explicitly urged the government to pursue deeper ties with the EU, welcoming steps to reset relations, such as the recent agreement with Brussels to reduce border checks. Bailey contends that openness to trade is a critical determinant of productivity, and greater economic fragmentation makes the Bank of England's job of controlling inflation harder due to more inflexible supply-side conditions. He emphasized that rebuilding relations should be pursued where possible, while respecting the political decision made by the British people.