Bank of England boss says UK must ‘rebuild relations’ after Brexit

Assessing the impact of the UK’s decision to leave the EU on the economy has been tricky given the multiple economic shocks in recent years.

The Office for Budget Responsibility and other independent analysts estimate the economy will take a 4% hit over 15 years as a result.

Goods trade, especially in food and farm exports, has been especially hit by the imposition of new trade barriers. Trade in services, such as banking, has done better than expected, however.

Some politicians have said there could be a better relationship between the UK and the EU.

“We need to be positive here and optimistic that a better deal can be actually closed on that front,” Spain’s Finance Minister Carlos Cuerpo told the BBC.

Meanwhile, Sir John Gieve, former deputy governor of the Bank of England, said the UK could negotiate “some deals around the edges which reduce the barriers to trade”.

He too ruled out rejoining the single market or customs union, but told the BBC’s Today programme: “If we could, in due course, get close to joining the customs union I think that would be a major help.”

He added it would mean “people would invest in Britain… in the knowledge they could freely export into Europe, as they did before Brexit”.