Brexit Has Hit UK’s Economic Openness, Says Bank of England Governor

GUARDIAN EUROPE: Andrew Bailey says free trade demands greater international cooperation on financial rule-making

The governor of the Bank of England has called for greater cooperation on financial rule-making, warning that Brexit has affected the “openness of the UK economy”.

In an apparent swipe at those calling for the UK to develop a separate rulebook for banking and insurance activities, Andrew Bailey said free trade needed strong regulation based on agreements with foreign watchdogs.

Speaking in Dublin at a financial services conference organised by the Irish central bank, he argued against trade protectionism and regulatory fragmentation.

“As a public official, I take no position on Brexit per se,” Bailey said. “That was a decision for the people of the UK.” » | Phillip Inman | Wednesday, November 8, 2023

Brexit has helped the City, not harmed it despite 'pretty dire' warnings from economists and experts, says Bank of England governor Andrew Bailey: • Bank of England governor says Brexit opportunities have 'protected' Britain • Mr Bailey said Britain had defied 'dire' warnings from economists and experts • Comments are a marked shift from his immediate predecessor Mark Carney »

If my memory serves me well, Andrew Bailey, the Governor of the Bank of England, at the time of the Brexit Referendum advocated for the UK to leave the EU. I am almost certain that he was an ardent Brexiteer. – © Mark Alexander

Mini-budget Will Likely Mean Higher Interest Rates, Warns Bank of England Governor

THE GUARDIAN: Andrew Bailey says UK borrowers can expect to feel impact of Truss government’s tax and spending decisions

Governor of the Bank of England, Andrew Bailey, says extra stimulus in last month’s mini-budget would force the Bank into tougher-than-expected action. Photograph: Drew Angerer/Getty Images
UK borrowers can expect to face higher interest rates as a result of the Truss government’s tax and spending decisions during its six weeks in power, the governor of the Bank of England has warned.

Despite the U-turn on corporation tax on Friday that saw the sacking of Kwasi Kwarteng as chancellor, Andrew Bailey said the extra stimulus provided in last month’s mini-budget would add to inflation and force the Bank into tougher-than-expected action.

Bailey said he had impressed on the new chancellor, Jeremy Hunt, the need for the public finances to be sustainable and that there had been a “clear and immediate meeting of minds”. Hunt used his first interview to stress mistakes made by Truss would require “difficult decisions” to be made. » | Larry Elliott | Saturday, October 15, 2022

Bank of England under Fire over £23m Bonus Payouts

THE OBSERVER: Anger as thousands of Bank staff enjoy ‘performance awards’ after governor urged other British workers not to demand big rises

The Bank of England, which has been criticised for underestimating the threat of rising inflation, last year paid out bonuses to its staff amounting to more than £23m, the Observer can reveal.

This bonus pot was at its highest level for at least two years, with more than 4,260 employees receiving performance awards. Andrew Bailey, the bank’s governor, was widely criticised earlier this year after telling Britain’s workers that they should not be asking for big pay rises because inflation had to be kept under control.

The bank is tasked by the government with hitting an inflation target of 2%, but the current rate stands at 9.4%. Lord Sikka, emeritus professor of accounting at Sheffield University, said: “Bonuses should only be paid for extraordinary performance, but there is no evidence the bank has delivered even an ordinary performance. They are unjustified.” » Jon Ungoed-Thomas | Sarurday, August 13, 2022