UK central bank governor, finance minister "need to re-establish relations with EU"...adverse mention of Brexit

In a rare public appearance, the governor of the U.K. central bank mentioned the adverse effects of Britain's exit from the EU and Brexit on the economy.

In his annual keynote address on the night of 14th local time, Bank of England (BOE) Governor Andrew Bailey said he had no position on Brexit as a public official, but that the consequences should be pointed out and that Brexit was a burden on the UK economy.

It said the impact was particularly large in the commodities sector, adding that it highlighted the reason to respect the British people's critical decisions but remain vigilant and welcome the opportunity to rebuild relations with the EU.

Bailey also did not directly mention U.S. President-elect Trump, but said he should not focus solely on the impact of Brexit, pointing to the geopolitical shock and global economic divisions.

Britain's finance minister, Rachel Reeves, also said in a speech that the country faced structural challenges, including those following Brexit, and stressed that Britain's biggest trading partner is the European Union, which will not roll back Brexit but must re-establish ties.

The Financial Times said it was highly unusual for the finance minister and central bank governor to join forces in their keynote speech to point out the economic adverse effects of Brexit and order a reset of relations, noting the move comes amid a possible trade dispute between the second Trump administration in the United States and Europe.