Wednesday, Sep 23, 2020
International Finance
Banking Fintech

BoE announces new £100 bn stimulus package for the UK

BOE UK
Threadneedle Street’s nine-member monetary policy committee has raised concerns that jobs could be more intense in retailing and hospitality

The Bank of England has announced a new £100 billion stimulus package for the UK economy on the back of rising unemployment rate in the country. It is reported that there are economic concerns in terms of recovery.

Threadneedle Street’s nine-member monetary policy committee has raised concerns that jobs could be more intense in sectors such as retailing and hospitality. However analysts and economists are unable to provide their views on the Bank of England’s decision to inject a new stimulus package into the UK economy.

The committee told the media that “Although stronger than expected, it is difficult to make a clear inference from that about the recovery thereafter. There is a risk of higher and more persistent unemployment in the UK. Even with the relaxation of some Covid-related restrictions on economic activity, a degree of precautionary behaviour by households and businesses is likely to persist. The economy, and especially the labour market, will therefore take some time to recover towards its previous path. Inflation is well below 2 percent target and is expected to fall further below it in coming quarters, largely reflecting the weakness of demand.”

Sterling value increased against other currencies including the dollar before falling sharply. Even the UK economy is healthier than the Bank of England had expected, additional quantitative easing (QE) is required.

Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.