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Reduction in trade with EU would hit UK economy - BoE

A fall in trade between the UK and the European Union would affect both economies and lead to higher costs, the BoE deputy governor Ben Broadbent said on Tuesday in Aberdeen.

Broadbent warned that crumbling of existing trade links with the 27-nation bloc would hurt Britain's relative advantage in exports of financial and commercial services.

At the same time, Britain will have to make more of the goods it currently carries inwards from the EU and is not such good at producing.

Despite expectations of BoE watchers, Mr Broadbent did not discuss UK monetary policy and possible interest rates hike.

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