06 November, 2020
What does the new restrictions mean for the economy?
Andrew Bailey, governor of the Bank of England has promised to support the economy during the rise of Covid-19 cases.
The Bank had announced an additional £150bn of support and the governor said it was vital that policymakers acted “quickly and strongly”.
While interest rates have been kept on hold at low of 0.1%, a sluggish recovery is expected following the new restrictions placed in England.
Despite hope that the economy will evade another recession; the bank expects unemployment rates to hugely increase as government support schemes wane.
They also anticipate that in the final quarter of 2020, the economy will deflate by 2%, and with assumptions that the restrictions will ease by 2021; there will be a bounce back in the first few months.
“We are here to do everything we can to support the people of this country – and we’ll do it and will do it quickly”, Mr Bailey said.