Bank of England Governor Andrew Bailey said Britain's departure from the European Union has had a negative impact on the country's financial services industry, though the consequences have been less severe than many analysts predicted during the Brexit debate a decade ago.

Speaking after the Bank of England voted 7-2 to keep interest rates unchanged at 3.75%, Bailey acknowledged that Brexit created challenges for the financial sector but noted that the industry has proven more resilient than expected. “I'm not pretending it's been good,” Bailey told reporters, while emphasizing that the outcome has been “nowhere near as detrimental as many people predicted at the time.”

Since the U.K.'s exit from the European Union, financial institutions have faced new regulatory barriers, reduced access to European markets, and the relocation of some operations and assets to financial centers within the bloc. However, London's status as a leading global financial hub has remained largely intact, supported by its deep capital markets, legal framework, international investor base, and expertise in areas such as foreign exchange, insurance, and asset management.

Bailey's comments come as policymakers continue to assess the long-term economic effects of Brexit amid a changing global environment. While challenges remain for cross-border financial services, the Bank of England appears focused on broader economic concerns, including inflation, growth, and monetary policy. The central bank's latest decision to leave rates unchanged suggests officials remain cautious as they monitor domestic economic conditions and global market developments.