BOE: Economic growth to fall sharply in 2H 2020 by 14%
During its quarterly inflation report, the Bank of England Governor struck struck a cautious tone with the initial statements like, “significant loss of economic output has become inevitable.”
Also read: Breaking: BOE keeps the key rate on hold, GBP/USD bounces
However, following comments tried to placate traders with statements like, “we expect the recovery of the economy to happen overtime, though much more rapidly than the pulback from the global financial crisis.”
The bank projects, rconomic growth to fall sharply in 2H 2020 with the UK economy shrinking by 14% before rebounding next year.
Also, CPI inflation is likely to fall significantly below the MPC’s 2% target, given falling energy prices and the weakness of demand. It rises to around the 2% target further out.
Following the news, GBP/USD pauses arond 1.2360, down from the intraday top of 1.2382.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
