BoE: Risk of weaker trade relations with the EU - ANZ

BoE Deputy Governor Ben Broadbent speech highlighted the risk of weaker trade relations with the EU and the negative economic impacts that can occur yesterday, notes the analysis team at ANZ.

Key Quotes

 “Trade really is mutually beneficial and less of it costs us all,” Broadbent said. “A significant curtailment of trade with Europe would force the U.K. to shift away from producing the things it’s been relatively good at, and therefore tends to export to the EU, and towards the things it currently imports and is relatively less good at.” The GBP reacted negatively to the news as the decision to focus on risks rather than touting economic resilience highlighting a more cautious tone from at least one member of the BoE.”