The hit to the UK economy from Brexit is coming through faster than had previously been expected, the Bank of England deputy governor has said. Ben Broadbent said it was still not clear whether the effects of EU withdrawal were a reason why the UK is forecast to do worse than other major economies this year.
His comments follow a warning by the International Monetary Fund (IMF) that Britain alone of the leading economies is expected to contract this year. Labour said it underlined the needed for the UK to build a new trading relationship with its closest neighbour and trading partner.
Speaking at a press conference following the Bank’s latest interest rate hike, Mr Broadbent, the deputy governor for monetary policy, said they had not changed their overall assessment of the economic impact of Brexit. He acknowledged, however, that they had not expected to see the effect on growth figures to come through quite so quickly.
