Bank of England Governor Mark Carney said on Monday that Brexit is likely to hurt Britain's growth prospects in the short term and push up inflation as the country adjusts to life outside the European Union.
In a speech that immediately drew criticism from some Brexit supporters who have previously criticized his stance on the EU, Carney warned that Britain would face a cost for reworking its trade relationships.
In the short term, the weakening of trade ties with its EU partners would not be offset by new agreements with other countries, he said, as he repeated his argument from last week that interest rates would probably need to rise soon.
"This makes Brexit, relative to the experience of the past half century, unique," Carney said in a speech at the International Monetary Fund's Washington headquarters. "It will be, at least for a period of time, an example of de-globalization, not globalization."
Brexit supporters say the freedom to strike new trade deals is one of the big advantages of leaving the European Union. Diane James, an independent member of the European Parliament who was briefly
"Mark Carney blaming inflation on Brexit. Does he not realize that QE and ZIRP are the major causes?," James said on Twitter, referring to the BoE's stimulus programs.
Read More: Bank of England’s Carney sees Brexit pushing up inflation, rate hike likely - The Globe and Mail
In a speech that immediately drew criticism from some Brexit supporters who have previously criticized his stance on the EU, Carney warned that Britain would face a cost for reworking its trade relationships.
In the short term, the weakening of trade ties with its EU partners would not be offset by new agreements with other countries, he said, as he repeated his argument from last week that interest rates would probably need to rise soon.
"This makes Brexit, relative to the experience of the past half century, unique," Carney said in a speech at the International Monetary Fund's Washington headquarters. "It will be, at least for a period of time, an example of de-globalization, not globalization."
Brexit supporters say the freedom to strike new trade deals is one of the big advantages of leaving the European Union. Diane James, an independent member of the European Parliament who was briefly
leader elect of Britain's anti-EU UKIP party, took aim at Carney.
"Mark Carney blaming inflation on Brexit. Does he not realize that QE and ZIRP are the major causes?," James said on Twitter, referring to the BoE's stimulus programs.
Read More: Bank of England’s Carney sees Brexit pushing up inflation, rate hike likely - The Globe and Mail
