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What does the new restrictions mean for the economy?

By November 6, 2020September 27th, 2022No Comments

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.