MNI BRIEF: BOE Bailey Warns Against Protectionism, Splintering

Bank of England Governor Andrew Bailey said Wednesday he was "a strong advocate of free trade and open economies" and highlighted the risks of protectionism and financial market and regulatory fragmentation.

Bailey, speaking in Dublin, said that recent episodes, including the demise of Liability Driven Investment funds which were based in various regulatory regimes, highlighted a need for greater co-operation among regulators and common standards.

While Brexit was a matter for the electorate "It has led to a reduction in the openness of the UK economy," Bailey said and he pushed back against onshoring, saying diversifying supply chains should not lead to economic protectionism. He said that "the costs that go with ... fragmentation are real and undesirable" and a better approach was international co-ordination and co-operation.

Bailey made no comment in the speech on current monetary policy setting.