Don't relax rules on City after Brexit, Mark Carney warns

Bank of England governor predicts financial sector will thrive after Brexit but says there can be no return to the lax pre-2007 regime

The governor of the Bank of England has predicted that the financial sector could double in size to be 20 times as big as GDP within the next 25 years, but warned that the government must hold its nerve and resist pressure to water down regulation after Brexit.

Speaking to the Guardian to mark the 10th anniversary of the start of the global financial crisis in August 2007, Mark Carney said a thriving City meant more jobs, tax revenues and exports. But the governor said the City should not be allowed to expand rapidly if it meant repeating the risky speculation of a decade ago.

Related: 'It's hard to remember how fraught it was': Mark Carney on the credit crunch

The problem is you have the same issues re-emerge ... and the progress that's been made is gradually chipped away