Andrew Bailey has warned that the economic impacts of Brexit will be negative \u201cfor the foreseeable future\u201d in the strongest intervention yet by the governor of the Bank of England on the consequences of Britain\u2019s exit from the EU.<\/p>\n
He said that he was careful not to give a personal view on Brexit, and that it was his job as a public official to implement the decision \u201ctaken by the people of the UK\u201d.<\/p>\n
\u201cBut if you ask me what the impact is on economic growth, I do have to answer that question as a public official,\u201d he said. \u201cAnd the answer is that, for the foreseeable future, it is negative but over the longer time there should be a positive, albeit partial, counterbalance.\u201d<\/p>\n
\u2022 Wes Streeting: I\u2019m glad we can now admit that Brexit is a problem<\/a><\/p>\n Bailey made the remarks in Washington DC where he was addressing a group of fellow central bankers. He has previously talked about the impact on trade<\/a> from Brexit, which he has said \u201cweighed\u201d on the level of supply in the economy, and has called on the UK to rebuild relations with the EU. <\/p>\n The chancellor Rachel Reeves has also previously called for Britain to have stronger ties with its once-close trading partner and last week cited the impact of Brexit as among the reasons for the tight backdrop to next month\u2019s budget.<\/p>\n Reeves told Sky News that Brexit was one of the reasons she was looking at \u201ctax and spending\u201d ahead of her budget on November 26.<\/p>\n \u201cThere is no doubting that the impact of Brexit is severe and long lasting,\u201d she said, adding: \u201cPeople thought the UK economy would be 4 per cent smaller because of Brexit.\u201d<\/p>\n Four years ago the Office for Budget Responsibility said that Britain\u2019s economy would be four per cent smaller than if the country had stayed in the EU.<\/p>\n While Bailey\u2019s own views on Brexit are not known, he has previously acknowledged that it has imposed restrictions on trade.<\/p>\n