Coronavirus-2: Bank of England gave new relief of $ 195 billion, Central Bank of London will buy more bonds from this amount

 

The Bank of England's rate setting panel said it had a challenge to deal with the economic and financial                                                          impact of the new wave of coronaviruses



The market was expected to get just $ 130 billion in relief

Britain imposed a lockdown for 4 weeks across England on Thursday

Central Bank maintains main interest rate at record low of 0.1%


The Bank of England announced new relief on Thursday to deal with the economic and financial impact of the second wave of coronaviruses. The Central Bank said it would buy further 150 billion pounds (195 billion dollars) of bonds. The market was expected to get just 100 billion pounds (about $ 130 billion) of relief from the Central Bank. The Central Bank also maintained its main interest rate at a record low of 0.1 per cent.

 

The Bank of England's rate setting panel said it had a challenge to deal with the economic and financial impact of the new wave of coronaviruses. In Britain, a lockdown has been imposed again on Thursday across England. This lockdown is currently in place for 4 weeks.









Danger of double dip resistance in Britain

The IHS market said on Wednesday that the UK was facing a double dip resistance, the second recession in this cold. The IHS Market / CIPS Services Purchasing Managers' Index (PMI) fell to a four-month low of 51.4 in October, from 56.1 in September. An index above 50 means growth and a fall below.








Approximate 3% fall in GDP for December quarter

In England, the scope of the lockdown starting on Thursday is smaller than the lockdown of March and April. But some economists have speculated that November production may decline by 10 per cent. Due to this, the output for December quarter is expected to fall by about 3 per cent.








V-Shaped recovery hopes completely crushed

Samuel Tombs, Chief UK Economist at Pantheon Macroeconomics, said the hopes for a V-shaped recovery have been completely wiped out. In the second quarter of 2020 (April-June), Britain's GDP had fallen by 20 per cent. The figure for the third quarter has not yet arrived, but a strong recovery was seen as early as the third quarter.








UK economy stalled before lockdown-2

From Thursday all non-essential shops, pubs and restaurants in England will be closed for 4 weeks. Only takeaway food serving outlets will be open. IHS Market also said that now the journey of recovery in 2021 is going to be more difficult. The UK's composite PMI index also declined to 52.1 in October from 56.5 in September.


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