A reduction in trade between Britain and the European Union would harm both economies and causes prices to rise, Bank of England Deputy Governor Ben Broadbent said on Tuesday, without addressing the outlook for interest rates.
In a speech that focused on the benefits of globalisation, Broadbent warned that less trade with the EU would damage Britain’s comparative advantage in exports of financial and business services.
At the same time, Britain would end up having to produce more of the things it currently imports from the EU and is less good at creating.
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