BoE governor urges UK government to seek closer trade ties with the EU

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The Governor of the Bank of England, Andrew Bailey, has called on the government to “reduce the negative effects of Brexit” for close alignment with the EU.

Bailey made the case to reduce non-tariff barriers on Thursday, especially in the financial service industry, saying that low red tape would increase trade and economic growth.

Prime Minister Sir Care Starmer has commented on the UK’s “reset” agreement with the EU this month. These include plans to reduce trade barriers in the region, including food items and electricity.

In a lecture, Bailey welcomed the government’s efforts to increase trade with Europe but warned that Brexit had “weight” on productivity and growth and suggested the UK and the EU should try to deepen their relationship.

Bailey joined forces with Chancellor Rachel Reeves in November The UK is calling for rebuilding Relationships with the EU, at a time when Donald Trump won the US presidential election, the fear of the translatant trade war was increasing.

Speaking in Ireland, Bowe’s governor suggested that more things could be done to increase the UK-EU trade in financial services, he said that a “two-faced road” would deepen the market and benefited both sides.

“He told a financial service dinner in Dublin,” We have the ability to try to increase the openness of our financial markets by reducing non-tariff barriers. “

Reeves argue that in the chemical sector of Britain, the “mature industry” should agree with the EU, agreeing to the rules of the EU, partially closely related to the EU.

Allies of Starmer have said that the UK-EU Reset Agreement was a starting point to discuss close relationships and confidence created by the new system could take more ambitious steps to increase trade in the future.

Bailey said that when he was not calling Brexit “wrong”, it created a non-tariff barrier. “We should do our best to reduce the negative impact on the business,” he said.

Due to the debate that trade from Britain to block is a “one-way road”, he was clear about the benefits of both the UK and the EU to increase the openness of the financial market by reducing non-tariff barriers.

“Like the product business, Open Financial Markets support economic growth in addition to increasing investment and reducing capital costs,” said Bailey.

He also added that close cooperation between the United Kingdom and the EU was increasingly relevant in the context of “extended market instability” observing after the announcement of Trump’s tariff.