The Bank of England indicated Thursday that it could cut interest rates below zero for the first time in its 326-year history as it tries to shore up a U.K. economic recovery that is facing the dual headwinds of the coronavirus and Brexit
The economic damage done by Brexit is happening sooner than feared, the Bank of England warned. / The central bank said the UK economy is being hindered by a sharper slump in trade with the European Union than implied by official statistics and “very subdued” business investment.
“Well, I think the long-term effects ... would be larger than the long-term effects of COVID.”
Stability report says about half of EU companies using UK-registered banks face being cut off.
Brexit has added to the UK's economic woes by lowering the value of the pound and contributing to price rises, an ex-Bank of England governor has said.
As evidence mounts of the long-term harm being inflicted on the U.K. economy by Brexit, the government is coming under pressure to acknowledge the elephant in the room.
Mark Carney sets 14 July deadline to see plans, saying firms must prepare for ‘all eventualities’ as he calls on politicians not to cut City adrift from Europe
BoE economist warns no-deal Brexit would likely lead to interest rate cut. / Brexit has already cost the UK economy £40bn per year – or £800m per week – in the period since the EU referendum in 2016, according to Bank of England economist Jan Vlieghe.
Bank of England Governor Mark Carney warns of further market volatility due to no-deal fears
16/01/2019
The Governor of the Bank of England, Mark Carney, has warned that financial markets are likely to be volatile in the wake of Parliament’s rejection of Theresa May’s Brexit plans.
Boris Johnson’s government faces deep economic problems. / UK lagging behind major peers on productivity and investment. / “... From a 16% devaluation of the pound to an eye-watering slide in trade and investment, Brexit’s impact is plain to see. The data have only reinforced our view that life outside of the EU would leave the UK worse off.”
Labour said the warning underlines the need for a ‘more productive’ relationship with Brussels following Britain’s withdrawal from the EU.
The Bank of England might need to cut interest rates almost to zero after a no-deal Brexit, while repeated Brexit delays could also make a rate cut necessary, senior BoE official Gertjan Vlieghe said on Friday.
The 2016 referendum result led to business investment being ‘stopped in its tracks’ and a ‘productivity penalty’ of £29bn, says Professor Jonathan Haskel.
The price of food is at risk of rising between 5–10% if there is a disorderly Brexit, warned Bank of England governor Mark Carney.
'The economy would be in better shape had Brexit not happened': Ex-Bank of England economist Michael Saunders [1 min]
17/11/2022
Former Monetary Policy Committee at Bank of England Michael Saunders said Brexit is to blame for "persistent" and "lasting" damage to the UK economy.
New banking regulations could increase the cost of small business lending by around a third and “fundamentally change” the market as debate around the implementation of international banking rules in the UK intensifies.
Our politicians won’t mention the B-word – but Brexit has made Britain’s economic crisis worse
17/05/2022
Our silence over the issue is compounding the problem.
Brexit is partly to blame for historically high inflation in the UK by causing labour shortages, strengthening pricing pressure among firms, and weakening the economy, Bank of England chief economist Huw Pill has said.
Huw Pill said Brexit has reduced trade between the UK and Europe which has had a knock-on effect on labour, productivity and prices.
Bank forecasts worst year for UK since 2009
07/02/2019
The Bank of England expects growth this year to be the slowest since 2009 when the economy was in recession.
Leaving the EU cost every household in Britain and Northern Ireland around £1,000, according to Bank of England policy-maker Jonathan Haskel.
Brexit created "frictions" in trade that impacted the UK economy, Work and Pensions Secretary Mel Stride has said.
In our series looking at life after Brexit, the European parliament’s former negotiator Guy Verhofstadt argues that Britain exchanged a Jaguar for a Ford Fiesta in the 2016 referendum.
Experts from the Institute for Fiscal Studies, the Resolution Foundation and others agreed Kwasi Kwarteng’s unfunded tax cuts played a role.
Brexit: The scorecard two years on
02/01/2023
So how is it going? In economic terms, the past year has helped differentiate the impact of Covid from the impact of Brexit. / Doing so has exposed a hefty price being paid by many firms, as well as public service employment, for dislocation of Britain from its nearest neighbour's trading bloc.