Andrew Bailey warns of risks to world economy posed by 'fragmentation'

Calls for common public policy objectives

Bank of England governor Andrew Bailey has warned of the risks posed by “fragmentation” to the world economy, and called for greater co-operation on setting international regulatory standards.

During a speech at the Financial System Conference in Dublin today (8 November), Bailey said the world economy is experiencing dissolution, which is "at risk of further such pressure".  This was partly due to the Covid-19 pandemic, which he said was the "first shock" to the supply chain system. However, he noted this was "not the end of the story" on fractures within the world economy.  Russia's war in Ukraine was another catalyst for increased division, as well as Brexit, which he said has "led to a reduction in the openness" of the UK economy.  Bank of England's Pill: Rate decisi...