The Bank of England's chief economist warned that the impact of Brexit will deepen price pressures and make it difficult to reduce inflation. Economists estimate Brexit will already drag down UK GDP by 2-4%.
June 29, 2569 at 13.47:XNUMX a.m. Bloomberg News reported that The chief economist of the Bank of England (BOE) warned that the UK's fight against inflation is facing increasing difficulty. Due to the structural impact of withdrawing from the European Union (Brexit).
Hugh Pill, Chief Economist of the BOE. said The economic changes following Brexit are likely to create more self-sustaining price pressure in the UK economy, resulting in prolonged inflation that is difficult to reduce.
It is the 10th anniversary of the Brexit referendum in 2559. Many economists are beginning to agree that... Leaving the European Union has had a lasting impact on the UK economy through reduced trade ties with Europe. Public opinion polls still reflect that many Britons are unhappy with the outcome of Brexit, and the Labour government is attempting to restore relations with the European Union.
Pill specify that The trade barriers that arose after Brexit, as well as changes in the labor market following the end of free movement of labor between the United Kingdom and the European Union, have significantly altered the structure of both goods and labor markets.
He said during a conference in Tashkent, Uzbekistan that: These changes are still being evaluated, but I personally believe that Brexit makes the British economy more susceptible to inflationary surges and could lead to high inflation levels for an extended period.
Pill's comments are the latest criticism of Brexit from the Bank of England's Monetary Policy Committee, which faces the challenge of keeping inflation close to its 2% target after the economy has been impacted by supply chain disruptions, the COVID-19 pandemic, and the energy price crisis in recent years.
Although central banks have been able to use monetary policy to control demand in the economy, supply-side factors affected by Brexit are another major reason why inflationary pressures have eased more slowly than expected.
before Bloomberg Economics Evaluate that Brexit has already cost the UK economy approximately 2-4% of its gross domestic product (GDP), close to government estimates, although this is lower than some studies that predicted damage could be as high as 6-8% of GDP per capita.
side Andrew Bailey, Governor of the BoE I once expressed the opinion that: Brexit has impacted the British economy and prompted the UK to forge closer economic cooperation with the European Union.
However, the summit between the UK and the European Union to review the Brexit deal has been postponed due to domestic political uncertainty following Prime Minister Keir Starmer's resignation earlier this month. This has led markets to watch closely to see how the new leader, expected to be former Manchester Mayor Andy Burnham, will shape the UK's relationship with the European Union going forward.
refer : www.bloomberg.com
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