Posted By Global Banking and Finance Review
Posted on May 9, 2025
LONDON (Reuters) -Britain needs to rebuild its trading relationship with the European Union, the Governor of the Bank of England Andrew Bailey told the BBC, adding that growing trade with the bloc would be beneficial to the UK.
Britain and the EU are holding a summit on May 19 that could lead to closer defence cooperation and pave the way for agreements to ease trading.
Bailey was asked by the BBC about the potential reset of UK-EU relations and their impact on the economy and inflation, after Britain on Thursday agreed a limited bilateral trade agreement with the United States.
Reversing the decline in trade with the EU which followed the country's exit from the bloc in 2020 would be a positive step, he said, adding that as a public official he did not take a view on Brexit.
"Having a more open economy to trade with the European Union," Bailey said. "It would be beneficial."
The EU remains Britain's largest trading partner.
"It is important we do everything we can to ensure that whatever decisions are taken on the Brexit front do not damage the long-term trade position. So I hope that we can use this to start to rebuild that relationship," he said.
(Reporting by Sarah Young; editing by William James)
