“We can’t ignore it, frankly, at this point, because of the risks to the U.K. situation, to U.K. growth … the impact on inflation could be ambiguous, but the risks to the U.K. economy, and to indeed the world economy, are substantial.”
Bailey also warned against what he described as a “very damaging thing for the world” if President Donald Trump decided to pull the U.S. out of organizations like the World Bank and International Monetary Fund, after the administration began a review of the country’s membership of international fora.
“If you think the world economy is somehow out of balance, the place to address those balances is in a multilateral forum, not by bilateral action,” Bailey said.
