You are here: Home -

UK faces ‘unprecedented uncertainty’, Bank of England boss warns

by:
  • 19/10/2020
  • 0
The UK faces “an unprecedented level of economic uncertainty,” Bank of England governor Andrew Bailey has warned.

 

The coronavirus pandemic hit the economy hard with GDP falling by 20 per cent in the three months to June.

Economic output at the end of the third quarter of this year is now set to be 10 per cent lower than the end of 2019 as a result of the crisis, the central bank chief (pictured) said.

According to the BBC, Bailey told an online event for central banks on Sunday:  “Of course, that is heightened now by the return of Covid… the risks remain very heavily skewed towards the downside.”

Policymakers should act aggressively to help protect the economy, he added, and referenced the ongoing debate over negative interest rates.

According to the BBC, Bailey said: “Our assessment of negative interest rates, from the experience elsewhere, is that they probably appear to work better in a more wholesale financial market context, and probably better in a nascent economic upturn.”

 

Tags

There are 0 Comment(s)

You may also be interested in

Read previous post:
Nick Chadbourne ceo LMS
LMS: Product transfers to boom as brokers swamped by purchase cases

Product transfers are likely to see a surge in demand during the next six months as brokers and lenders become...

Close