Bank of England Governor Andrew Bailey has urged global financial leaders, particularly the United States and China, to resist economic nationalism. In a speech released ahead of Donald Trump's inauguration as U.S. president, Bailey emphasized the importance of international cooperation in addressing global challenges, reports Reuters.
"Hope is not a winning strategy," Bailey said in prepared remarks for a University of Cambridge event. He warned that differing philosophical outlooks between the U.S. and China could hinder effective collaboration, adding that shared prosperity was crucial for fostering successful global cooperation.
Bailey cautioned that a world marked by heightened inequality and instability would make collective action more difficult. "Greater risks of unequal outcomes and instability create an environment where global cooperation is harder to achieve," he noted.
The International Monetary Fund echoed these concerns earlier on Friday, warning that unilateral actions—such as trade tariffs, subsidies, or non-tariff barriers—could harm all nations involved.
Bailey also stressed that international collaboration should extend beyond crisis situations, like the 2007-08 financial meltdown. "The vulnerabilities are growing, but the solutions require global action before tipping into crisis multilateralism—a scenario we must strive to avoid," he said.
The speech did not address the British economy or the Bank of England's monetary policy.
Bd-pratidin English/ Jisan
