Bank of England Governor Warns No-deal Brexit Economic Damage Worse than Covid Pandemic.
The Governor of the Bank of England has said that the long-term economic effects of a no-deal Brexit will be more damaging than those of the coronavirus pandemic. Andrew Bailey said disruption to international trade caused by the failure to reach an agreement would not be in the interests of the UK and that it would take a long time for the British economy to adjust the new trading conditions.
The governor’s analysis contrasts with that of Boris Johnson, who has claimed against evidence that Britain would “prospect mightily” under a no-deal. Chancellor Rishi Sunak also said this weekend that the UK would “prosper in any eventuality”. Negotiators are running up against the deadline to secure a deal this month, with sticking points on fishing and state aid rules.
“The long-term effects, I think, would be larger than the long-term effects of Covid. It would be better to have a trade deal, yes, no question about it.” Mr Bailey told the Commons Treasury select committee on Monday, November 23.
The fallout from the pandemic and the second national lockdown in England was having a much bigger short-term impact on the economy, Bailey said, but he argued the lack of a trade agreement would cause long-lasting damage when he spoke to MPs at a Treasury committee meeting.
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