Andrew Bailey said it took time for "the real side of the economy to adjust to the changing profile of trade

A Brexit without an agreement would cause more long-term damage to the economy than the coronavirus pandemic, warned the Governor of the Bank of England

Andrew Bailey said he was relatively optimistic about the economy's ability to recover from the Covid-19 outbreak, but added that it would be more difficult to adjust if the country were to resume negotiations with the European Union under the World Trade Organisation.

"I think the long-term effects would be greater than the long-term effects of Covid," Bailey told the select Treasury committee. "It takes much longer for what I call the real side of the economy to adjust to the change in openness and the change in the profile of trade.