BOE’s Bailey: Impact of latest covid restrictions appears less than that in spring 2020

Dhwani Mehta FXStreet

Commenting on the impact of the latest coronavirus restriction on the British economy, the Bank of England (BOE) Governor Andrew Bailey said that it appears less severe than that in spring last year.

Additional quotes

“It does feel a bit as if the darkest hour is before dawn.”

“Our best guess is GDP over Q4 was flat to slightly down.”

“We have very little evidence of the scale of the economic impact of latest lockdown.”

“Mobility indicators are down more than in autumn, but less than in spring.”

“Expects Q1 output to be weaker than November forecasts.”

Market reaction

GBP/USD shows little reaction to Governor Bailey’s comments, hovering around 1.3550, up 0.28% so far. The ramping up of vaccinations in the UK is boding well for the cable amid broad-based US dollar retreat.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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