Bank of England's Bailey Cautions Against Overzealous Deregulation

Governor Andrew Bailey warns that scaling back financial regulations could undermine stability and recalls lessons from the 2008 financial crisis.

Andrew Bailey, Governor of the Bank of England, emphasized there is no trade-off between economic growth and financial stability in a speech in London.
Bailey expressed concerns over a global shift toward deregulation, urging policymakers to remember the damage caused by the 2008 financial crisis.
He acknowledged the need to address the UK's structurally slow growth but cautioned against excessive deregulation as a solution.
Chancellor Rachel Reeves has proposed loosening financial, planning, and mortgage regulations to spur growth, drawing criticism from experts over potential risks to stability.
Bailey highlighted alternative approaches to tackling financial vulnerabilities, including developing new tools like a liquidity facility for non-bank financial firms.