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.