BoE Monetary Policy Report Hearings Summary

The Governor of the Bank of England (BoE), Andrew Bailey, said on Monday that a no-deal Brexit could result in longer-term damage to the British economy compared with the Coronavirus (COVID-19) crisis, Reuters reported.

“Well, I think the long-term effects … would be larger than the long-term effects of COVID,” Bailey said at the BoE Monetary Policy Report Hearings in front of the House of Commons’ Treasury Committee.

“It takes a much longer period of time for what I call the real side of the economy to adjust to the change in openness and adjust to the change in the profile of trade.”

“It’s hard to put a multiple on it as you say, but I think you’re basically right to say that in that scenario you would expect a longer-term effect from the exit trade agreement.”

In addition, the BoE governor revealed that was probably a leak of its decision to increase its bond-buying program by GBP 150 billion.

“What we have to assume is that it was a leak and we therefore have to try to get to the bottom of it.”

The BoE is reportedly investigating the matter.