The latest Bank of England (BoE) policy meeting saw all policy measures left unchanged but the accompanying MPC warned of a potential slump in Q2 GDP and rising unemployment. Interest rates were left untouched at 0.1% while the bond buying program, QE, remained at GBP 645 billion.
The Monetary Policy Report however warned of a potential huge fall in UK Q2 GDP.
‘While there are wide bands of uncertainty around any estimates of activity at the present time, UK GDP is expected to be close to 30% lower in 2020 Q2 than it was at the end of 2019 (Chart 1.2). UK GDP is expected to have fallen by around 3% in 2020 Q1 and then to fall by a further 25% in Q2’
The report also said that unemployment is expected to rise to 9% in Q2.
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