BoE’s Carney: Brexit could lead to new form of international cooperation and cross-border commerce

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Below are some key takeaways from the speech given by Mark Carney, Governor of the Bank of England, at the Financial Times event in Frobisher Hall.

  • Trade tensions abroad and Brexit debates at home are manifestations of fundamental pressures to reorder globalisation. 
  • As the world economy has been reordered with the weight of emerging market economies rising from 40% to 60% of activity in the past quarter century, the US dollar is as dominant today as it ever was.
  • The tightening of financial conditions globally partly reflected the usual – if somewhat delayed – reaction to the tightening of monetary policy.
  • The slowing in global momentum may also be the product of rising trade tensions and growing policy uncertainty. 
  • Global economic policy uncertainty is at record highs.
  • Risks from China and de-globalisation are significant and growing, protection-ism already having an impact.
  • China is the one major economy in which all major financial imbalances have materially worsened.
  • It is in interests of everyone that a Brexit solution that works for all is found in weeks ahead.
  • Brexit could lead to new form of international cooperation and cross-border commerce.
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