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Montevideo, September 20th 2018 - 14:47 UTC

Bank of England said UK was already suffering a “Brexit effect”

Saturday, January 27th 2018 - 09:31 UTC
Full article 35 comments
Bank of Englnad vsaid that while global growth had accelerated, the UK was suffering a “Brexit effect” in the short term. Bank of Englnad vsaid that while global growth had accelerated, the UK was suffering a “Brexit effect” in the short term.
“What it works out to is tens of billions of pounds lower economic activity,” Mr Carney told Radio 4's Today program. “What it works out to is tens of billions of pounds lower economic activity,” Mr Carney told Radio 4's Today program.
Carney said that as “greater clarity” about the shape of Brexit emerged this year, there would be a “conscious re-coupling” of the UK with the global economy Carney said that as “greater clarity” about the shape of Brexit emerged this year, there would be a “conscious re-coupling” of the UK with the global economy

A “deeper relationship” with Europe will benefit the UK economy, the governor of the Bank of England has argued. Mark Carney's comments follow claims by chancellor Philip Hammond that the UK and EU economies will only move “very modestly” apart after Brexit.

 Mr Carney said that while global growth had accelerated, the UK was suffering a “Brexit effect” in the short term.

“The economy is doing not as well as we expected it to prior to the referendum,” he told the BBC in Davos. That meant the UK economy is now 1% smaller than the Bank had predicted before the EU vote.

“What it works out to is tens of billions of pounds lower economic activity,” Mr Carney told Radio 4's Today programme. “Investment has picked up a bit but it hasn't picked up anyways to the same extent as internationally.”

However, the governor said that as “greater clarity” about the shape of Brexit emerged this year, there would be a “conscious re-coupling” of the UK economy with the global economy.

“The deeper the relationship with Europe, the deeper the relationship with the rest of the world... the better it's going to be over time for the UK economy,” he added.

Mr Hammond said the EU and UK economies were already “completely interconnected and aligned”.

Mr Carney also said that companies had cut back on investing in the UK as they waited for more clarity on Brexit. “Investment in advanced economies is growing at double-digit rates, and it is low single digits here,” he said.

The Bank of England will give updated forecasts for the UK economy in the Bank of England's quarterly Inflation Report on 8 February.

Categories: Economy, International.

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  • Islander1

    Patrick - What is so wrong with the way UK handles the Falklands-Malvinas situation? Its handled in line with the modern democratic world system, in line with the UN Charter- Human Rights and Rights of People to decide their own Political future.
    Just as the Argentine people- 70% approx. of whom are of non-indigenous descent several and some many generations back - of course indeed also have the right to decide their future in argentina.
    Arg cannot harp on about who did what do who 200-300yrs ago - back then the whole damn lot were at it - grabbbing new lands and fighting each other over them British-French-Spanish-Portuguese-Belgian-Dutch, even the Germans and Italians - bloody pirates the lot!
    It was a different era - different rules- in the last 100yrs the rules have thankfully changed.

    Jan 27th, 2018 - 01:41 pm +3
  • darragh

    PE

    See what I mean? why so aggressive and offensive??? You do your argument no good by annoying people so why bother??

    “Some of you sound like in your entire lives never walked outside the streets of London, or heard even once any other language in existence except English”.

    That's quite funny seeing as London is probably the most polyglot city in the world.

    Personally I have only been to London a couple of times and it seemed to me that I heard many more languages their than say Madrid which I've also visited.
    But then, obviously you have never visited London or for that matter any part of the UK.

    Yes, my first language is English but I studied French, German, Latin and Irish at school.

    I don't have much use for German as we don't get many Germans around here even in the height of the season although we do get a fair few French.

    Here in the Ghaeltacht though, Irish is an everyday language.

    I see no reason why I shouldn't call a cockroach an apple, after all
    “what's in a name? That which we call a rose. By any other name would smell as sweet”.

    Jan 28th, 2018 - 01:44 pm +3
  • Clyde15

    PE
    Pro British as usual Patrick ! What did the UK get away with that no other EU country did ?

    Jan 27th, 2018 - 10:50 am +2
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