The UK must “rebuild relations” with the EU “while respecting the selection of the British people” who voted to leave in 2016, the financial institution of England’s governor has said.

Andrew Bailey’s Mansion House talk to investors marked some of his strongest comments yet on Brexit, saying one of its consequences has been weaker trade.

He has previously avoided commenting on the topic because of the financial institution’s independence from Westminster politics.

Mr Bailey said the changed connection with the EU has “weighed” on the economy.

“As a community official, I receive no position on Brexit per se,” he said. “But I do have to point out consequences.”

He went on: “The impact on trade seems to be more in goods than services… But it underlines why we must be alert to and welcome opportunities to rebuild relations while respecting that very significant selection of the British people.”

The government remains opposed to rejoining the EU, but Chancellor Rachel Reeves also said in her Mansion House talk there could be a closer connection.

“Our biggest buying and selling associate is the European Union. We will not be reversing Brexit, or re-entering the single trade or customs union. But we must reset our connection,” she said.

Mr Bailey said that the UK should not focus “just on the effects of Brexit”, warning about “geopolitical shocks and the broader fragmentation of the global economy”.

He made a similar comment last week when asked about US President-elect Donald Trump and his threat to impose tariffs of up to 20% on imports.

Vicky Pryce, chief economic adviser to the Centre for Economics and Business Research, said if that were to happen, “it is actually quite questionable whether the UK could have a special connection with the US when it still trades quite substantially with Europe”.

Assessing the impact of the UK’s selection to leave the EU on the economy has been tricky given the multiple economic shocks in recent years.

The Office for budgetary schedule Responsibility and other independent analysts approximate the economy will receive a 4% hit over 15 years as a outcome.

Goods trade, especially in food and farm exports, has been especially hit by the imposition of recent trade barriers. Trade in services, such as banking, has done better than expected, however.

Some politicians have said there could be a better connection between the UK and the EU.

“We require to be positive here and optimistic that a better deal can be actually closed on that front,” Spain’s Finance Minister Carlos Cuerpo told the BBC.

Meanwhile, Sir John Gieve, former deputy governor of the financial institution of England, said the UK could discuss “some deals around the edges which reduce the barriers to trade”.

He too ruled out rejoining the single trade or customs union, but told the BBC’s Today programme: “If we could, in due course, get close to joining the customs union I ponder that would be a major assist.”

He added it would cruel “people would invest in Britain… in the knowledge they could freely export into Europe, as they did before Brexit”.

Reeves also reiterated her plans to shake up the UK retirement fund structure in a bid for growth.

She wants council retirement fund pots to be merged so they can make bigger investments to generate higher returns, a shift criticised as risky by some.

“The UK has been regulating for uncertainty, but not regulating for growth,” she said.

The annual occurrence took place against a backdrop of businesses criticising the government for holding back growth through responsibility rises, which Reeves has said are essential to “properly pool” community services.

In her talk, Reeves said that regulations brought in after the 2008 global budgetary crisis “resulted in a structure which sought to eliminate uncertainty-taking”, adding that has now “gone too far”.

She said budgetary services in the UK were “the crown jewel in our economy” but added “we cannot receive the UK’s position as a global budgetary centre for granted”.

The government will publish a budgetary services schedule in the spring, focusing on fintech, sustainable finance, property management, insurance and pool markets, “laying the foundations for more private pool”, Reeves said.

Mr Bailey’s talk went on to address the wider UK economy and its lack of growth.

He described how productivity has fallen since the 2008 economic crash and has not recovered since.

He said the UK is not alone in having this issue, which he said also affects other parts of Europe, but noted that the US has “a better narrative to inform”.

Mr Bailey also echoed Reeves’ concern that the UK retirement fund structure is “fragmented” and requires “heavy lifting” to fix it.

Shadow chancellor Mel Stride said the Conservatives would “study the specific of these reforms, many of which pursue on from those we were pursuing in government”.

But he added that reforms “aimed at increasing growth will be significantly undermined by Labour’s budgetary schedule, which sent precisely the incorrect signal to investors and affluence creators”.