Andrew Bailey, the Bank of England governor, highlighted the necessity for the UK to enhance its economic growth rate. He warned that sacrificing financial stability could adversely affect long-term growth. During a Treasury Select Committee hearing, Bailey acknowledged that the UK has struggled with low growth potential since the financial crisis 15 years ago and noted the overall need for regulatory adaptations that support both financial stability and economic competitiveness. Chancellor Rachel Reeves emphasized that revitalizing the economy would be a challenging endeavor requiring significant action.
The UK has had a low potential growth rate for over 15 years since the financial crisis, highlighting the fragile relationship between financial stability and growth.
Bailey emphasized that financial stability is essential for growth, stating, 'Fundamentally, financial stability is a foundation for growth. There isn't a trade-off.'
He added that the relative economic health of the US is an exception, not representing the broader pattern seen in the UK and other regions.
The chancellor indicated the need to remove regulatory barriers to enhance economic growth, stressing that growth cannot occur if current regulations are upheld.
Collection
[
|
...
]