Bank of England governor Mark Carney says a “deeper relationship” with Europe could benefit the UK economy.
Mr Carney told the BBC on Friday that the UK economy had suffered a “Brexit effect” since the vote to leave the European Union.
"The economy is doing not as well as we expected it to prior to the referendum," said Mr Carney.
The Bank of England governor said investment has “picked up a bit but it hasn't picked up anyways to the same extent as internationally" and added that the UK economy could start to grow in line with the global economy if more clarity about the UK’s relationship with the European Union emerges from Brexit negotiations.
“The world economy is accelerating, and we haven’t seen that yet,” he said.
“There is the prospect this year, as there is greater clarity about the relationship with Europe and subsequently with the rest of the word, for a recoupling – if I can use that term borrowed from Gwyneth Paltrow - a conscious recoupling of the UK economy with the global economy.”
The UK economy grew at 0.5 per cent in the final quarter of 2017, howveer the Office for National Statistics said the long term picture was of "slower and more uneven" growth.
The UK economy fell behind all other G7 countries last June, trailing behind countries such as Germany, France and the US.
Prior to Brexit vote, the UK economy was expanding at a faster rate than all those nations.
“We will do whatever we can to support the economy during the transition - whether there is no deal or a comprehensive deal,” the Bank of England Governor said in November.
