BOE's Haldane: UK household spending has been remarkably resilient

Dhwani Mehta FXStreet

The Bank of England (BOE) Chief Economist Andy Haldane is on the wires now, via Reuters, making some upbeat comments on the UK's household spending, in light of the growing coronavirus cases in the Kingdom.

Key quotes

"UK household spending has been remarkably resilient."

"There is an open question of whether voluntary or involuntary social distancing is holding back spending."

"Second wave of COVID-19 in the US had little impact on total spending, may have implications for the UK."

"Possible that COVID-19 could reshape global supply chains and trade patterns."

"Monetary policy can provide more of a cushion."

"Right that more of the heavy lifting has been done by fiscal policy."

"I have nothing new to say on negative rates."

"BOE is doing work on negative rates, not the same as being ready to deploy that tool."

Market reaction

Despite the above comments, GBP/USD is accelerating declines below 1.3100, losing 0.31% on the day.

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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