In his Mansion House speech, Bank of England Governor Andrew Bailey emphasized the economic consequences of Brexit, highlighting its adverse impact on UK's trade, predominantly affecting goods over services. Bailey, while asserting no political stance, stressed the necessity to rebuild relations with the EU respecting Brexit's outcome. He noted that the UK's trading relationship with the EU has diminished potential supply and called for vigilance in seizing opportunities to improve these relations. Chancellor Rachel Reeves also addressed the event, critiquing overregulation post-financial crash and advocating for increased business investment. The broader economic context is complicated by geopolitical tensions and global economic fragmentation, further underscoring the need to enhance economic ties with the EU. Bailey's comments come amid ongoing concerns about the long-term economic shrinkage attributed to Brexit, as highlighted by estimates from the Office for Budget Responsibility.