Bank of England projects the worst U.K. economic slump since 1706 as it expects U.K. gross domestic product to fall by 14% over 2020.
This BOE’s economic outlook scenario also expects unemployment to be at 8 percent in 2020, 7 percent in 2021 and 4 percent in 2022.central bank has cut rates twice from 0.75 percent to 0.1 percent
“The MPC will continue to monitor the situation closely and, consistent with its remit, stands ready to take further action as necessary to support the economy and ensure a sustained return of inflation to the 2 percent target,” the BOE said in its report. “Nonetheless, because a degree of precautionary behavior by households and businesses is assumed to persist, the economy takes some time to recover towards its previous path,” the report said.
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