UK plc has tanked at twice the financial crisis rate but the Bank has only one meaningful weapon left – QE
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Back in August the Bank of England was relatively chipper about the economy. It was the month of “eat out to help out” scheme, sectors that had been locked down as a result of the pandemic were reopening and growth was exceeding expectations.
Three months on, the outlook – courtesy of a second wave of Covid-19 – has become much darker. Instead of the 5.5% economic expansion it had been pencilling in for the final three months of 2020, Threadneedle Street is assuming a 2% decline.
