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| Version 1 | Version 2 |
|---|---|
| Carney calls for 'deeper relationship' with Europe | Carney calls for 'deeper relationship' with Europe |
| (35 minutes later) | |
| A "deeper relationship" with Europe will benefit the UK economy, the governor of the Bank of England said. | A "deeper relationship" with Europe will benefit the UK economy, the governor of the Bank of England said. |
| Mark Carney's comments follow claims by chancellor Philip Hammond that the UK and EU economies will only move "very modestly" apart after Brexit. | Mark Carney's comments follow claims by chancellor Philip Hammond that the UK and EU economies will only move "very modestly" apart after Brexit. |
| Mr Carey said that while global growth had accelerated, the UK was suffering a "Brexit effect" in the short term. | Mr Carey said that while global growth had accelerated, the UK was suffering a "Brexit effect" in the short term. |
| "The economy is doing not as well as we expected it to prior to the referendum," he told the BBC in Davos. | "The economy is doing not as well as we expected it to prior to the referendum," he told the BBC in Davos. |
| That meant the UK economy is now 1% smaller than the Bank had predicted before the EU vote. | That meant the UK economy is now 1% smaller than the Bank had predicted before the EU vote. |
| "What it works out to is tens of billions of pounds lower economic activity," Mr Carney told Radio 4's Today programme. "Investment has picked up a bit but it hasn't picked up anyways to the same extent as internationally." | "What it works out to is tens of billions of pounds lower economic activity," Mr Carney told Radio 4's Today programme. "Investment has picked up a bit but it hasn't picked up anyways to the same extent as internationally." |
| However, the governor said that as "greater clarity" about the shape of Brexit emerged this year, there would be a "conscious re-coupling" of the UK economy with the global economy. | However, the governor said that as "greater clarity" about the shape of Brexit emerged this year, there would be a "conscious re-coupling" of the UK economy with the global economy. |
| "The deeper the relationship with Europe, the deeper the relationship with the rest of the world... the better it's going to be over time for the UK economy," he added. | "The deeper the relationship with Europe, the deeper the relationship with the rest of the world... the better it's going to be over time for the UK economy," he added. |
| Mr Hammond said the EU and UK economies were already "completely interconnected and aligned". | Mr Hammond said the EU and UK economies were already "completely interconnected and aligned". |
| Mr Carney also said that companies had cut back on investing in the UK as they waited for more clarity on Brexit. | |
| "Investment in advanced economies is growing at double-digit rates, and it is low single digits here," he said. | |
| The Bank of England will give updated forecasts for the UK economy in the Bank of England's quarterly Inflation Report on 8 February. |