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20h ago

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

He cited productivity weakness, an ageing population plus post‑Brexit trade barriers as drivers of a lower 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

  • Andrew Bailey delivered the assessment at the G30 International Banking Seminar in Washington, DC on Saturday.
  • He said growth will be weaker for now but predicted trade will adjust over time, producing at least a partial rebalancing.
  • Bailey estimated the UK's potential growth has fallen from about 2.5% to 1.5% over 15 years due to structural headwinds including trade restrictions.
  • He described AI as a likely long‑run productivity boost while warning of near‑term financial‑stability risks from stretched market valuations.
  • The remarks land as recent ONS data show subdued GDP readings and the IMF projects the highest G7 inflation for the UK in 2025–26, intensifying scrutiny of the government's budget plans.