Bank of England Governor Andrew Bailey has warned that the rise of populism is a major threat to rising global living standards, urging international institutions to be more assertive in challenging the narrative.
In a statement seen as a reference to political pressure on the US Federal Reserve's independence, Bailey said global institutions have a responsibility to voice unpopular assessments, as long as they are based on accurate and quality analysis.
Bailey was among several major central bank governors to express solidarity with Fed Chairman Jerome Powell, as concerns grow about political interference in monetary policy.
Speaking ahead of the World Economic Forum in Davos, Bailey said the tendency for countries to shift to more domestically oriented policies risks undermining growth and undermining international cooperation at a time of rising geopolitical tensions.
While acknowledging that global openness has unequal distributional effects, Bailey stressed that the world's economic and social challenges cannot be solved through isolationist policies.
