[...] “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.”
Citing the example of movement away from services exports, he said it could both lower U.K. income and raise costs of food and machinery. He also said that while globalization has hurt some sectors of the economy and probably contributed to the decline in industrial employment in the developed world, it has brought “significant benefits” for consumers, especially those on lower incomes, by lowering prices for goods.
While Broadbent’s speech sidesteps the question of his current stance on policy after weeks of speculation that the BOE could raise rates as soon as their August meeting, its tone may suggest he’s cautious on the U.K.’s economic outlook after Brexit. [...]
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