Brexit's impact on UK economy will remain 'negative for foreseeable future' – bank governor

REXIT will have a negative impact on the UK's economic growth "for the foreseeable future," Bank of England governor Andrew Bailey has warned.

- MATHILDE GRANDJEAN

The economy is, however, likely to adjust and find balance again in the longer term, Mr Bailey, who was speaking at the G30 40th annual International Banking Seminar on Saturday, added.

The event in Washington, DC saw Mr Bailey highlight a decline in the UK's potential growth rate from 2.5% to 1.5% over the past 15 years.

He linked this to lower productivity growth, an ageing population and trade restrictions including post-Brexit economic policies.

"For nearly a decade, I have been very careful to say that I take no position per se on Brexit, which was a decision by the people of the UK, and it is our job as public officials to implement it," Mr Bailey said.

"But, I quite often get asked a second question: what's the impact on economic growth? And as a public official, I have to answer that question. And the answer is that for the foreseeable future it is negative."