Brexit is a unique example of de-globalisation that will hurt Britain’s economy as trade ties with the EU are weakened, leading to higher inflationary pressures even after the effect of sterling’s recent depreciation disappears, Mark Carney said on Monday.
The Bank of England governor said that even though the intention of Brexit was not to close the UK off from the rest of the world that would initially be the main result because trade ties with Europe would be damaged and those with other countries would take time to grow.
This makes Brexit an example of “de-globalisation”, said Mr Carney, which would mean higher prices for consumers and the likelihood of higher interest rates to keep inflation under control.
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