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.
Comments
Post a Comment