• Privacy policy
  • T&C’s
  • About Us
    • FAQ
    • Meet the Team
  • Contact us
TLE ONLINE SHOP!
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
No Result
View All Result
The London Economic
No Result
View All Result
Home Business and Economics Economics

Bank forecasts show no v-shaped recovery in UK economy

Analysts also said the central bank could increase asset purchases later this year to deal with the impact of the virus.

Joe Mellor by Joe Mellor
2020-08-06 14:47
in Economics
Credit;PA

Credit;PA

FacebookTwitterLinkedinEmailWhatsapp

The UK economy is not set for a v-shaped recovery following the pandemic after the Bank of England projected it would take longer-than-expected to bounce back, economists have warned.

On Thursday morning, the central bank said the immediate impact of the economy is likely to be shallower than it last projected, but the recovery was now expected to be more drawn out.

It said that UK GDP is unlikely to reach pre-crisis levels until the end of 2021, having previously forecast it would reach that level by the second quarter of that year.

Jeremy Thomson Cook, chief economist at Equals, said: “The recovery is not going to be v-shaped, the Bank of England is not expecting the economy to return to Q4 2019 size before the end of next year, and expects inflation will not reach its target over the two-year forecast period.”

UK unemployment rate
(PA Graphics)

Tom Stevenson, investment director for personal investing, Fidelity International, said: “The Bank of England seems a lot less convinced by the prospect of a V-shaped recovery for the UK economy than even just a few weeks ago.

Uncertain

“The decision to leave interest rates unchanged at 0.1% surprised no-one but the tone of the accompanying commentary was uncertain.

“No-one knows what recovery from coronavirus will look like and the Bank now accepts that its own predictions are less helpful than useful.”

RelatedPosts

‘Sometimes, reality bites’: Brexit has worsened the cost of living crisis

Russian rouble rebounds to hit near 2-year high vs euro

‘Unnerving:’ Economic growth slows as cost-of-living crisis continues to bite

Cost of living crisis: Inflation rises faster than expected

At the bank’s latest Monetary Policy Committee meeting, members voted unanimously to hold rates at 1% and to maintain quantitative easing at £745 million.

Economists said that, although the bank is likely to deliver further asset purchases, it is unlikely to cut interest rates further this year.

Howard Archer, chief economic adviser to the EY Item Club, said: “It is possible that most MPC members will maintain concerns about the longer-term outlook for the UK economy.

“Consequently, the EY Item Club believes the Bank of England will ultimately decide that it has a further role to play in helping the economy build a sustainable recovery amid likely still challenging and uncertain conditions.

“We expect the Bank of England to announce a further dose of asset purchases either at its September or (more likely) November meetings, most likely around £100 billion.”

Critical moment

Meanwhile, Anneliese Dodds, Labour’s shadow chancellor, said: “Today’s assessment by the Bank of England shows that this is a critical moment for our economy.

“A short-term, post-lockdown rise in spending sits alongside a much more uncertain long-term picture of very low levels of business investment and the prospect of a sharp rise in unemployment.”

The FTSE 100 slipped in early trading as warnings of a longer-than-predicted recovery weighed heavily on trading sentiment.

Related – Farage ridiculed for latest migrant ‘invasion’ stunt

Since you are here

Since you are here, we wanted to ask for your help.

Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.

Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.

If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.

To donate or subscribe to The London Economic, click here.

The TLE shop is also now open, with all profits going to supporting our work.

The shop can be found here.

You can also SUBSCRIBE TO OUR NEWSLETTER .

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

Trending on TLE

  • All
  • trending
Abdollah

‘Rescue us’: Afghan teacher begs UK to help him escape Taliban

CHOMSKY: “If Corbyn had been elected, Britain would be pursuing a much more sane course”

What If We Got Rid Of Prisons?

More from TLE

Britain “haemorrhaging” manufacturing jobs

Amazon in talks about creating bank service aimed at young consumers

How To Make: Oyster Mushroom Sliders & Vegan Coleslaw

Borrowing overshoots target as Covid-19 action to send deficit soaring

Watch – Police thank two have-a-go-hero pals captured on CCTV rugby tackling wanted man

Lucky Numbers and Horoscopes for today, 16 November 2021

Restaurant Review – Mestizo

Children as young as FOUR and FIVE have committed sex offences, shocking police figures have revealed

Met officer to face ANOTHER nine charges – bringing total to 29 sex offences

Boris Johnson self-isolating after contact with Covid-19 case

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.




No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Meet the Team
    • Privacy policy
  • Contact us

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.