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last mo.

Bank of England Governor Says Brexit Will Weigh on UK Growth "For the Foreseeable Future"

He casts the drag as a consequence of reduced openness that has lowered the UK’s potential growth rate.

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Andrew Bailey had previously called on the UK to rebuild relations with the EU
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Overview

  • Speaking at the G30 seminar in Washington, Andrew Bailey said Brexit will damp UK economic growth "for the foreseeable future."
  • He linked a slide in potential growth from 2.5% to 1.5% over 15 years to weak productivity, ageing demographics and post‑Brexit trade barriers.
  • He said trade typically adjusts over time and projected only partial rebalancing in the longer term.
  • He pointed to investment in general‑purpose technologies such as AI to bolster productivity but warned stretched AI‑related valuations could threaten financial stability.
  • The assessment lands as ONS figures show 0.1% GDP growth in August after a 0.1% July fall and as the IMF forecasts the highest G7 inflation for the UK in 2025–26, increasing pressure before the Budget.