Andrew Bailey warns UK economy could be hit harder than first expected

'Scarring' from coronavirus crisis expected

Anna Fedorova
clock • 1 min read

Andrew Bailey, the governor of the Bank of England, has warned the UK economy could suffer worse “scarring” from the coronavirus crisis than originally predicted in August.

Speaking in front of the Treasury Committee, the governor said the outlook for the UK is facing a "record level" of uncertainty, rendering any forecasts made for the recovery unreliable. One of the biggest fears is that the public would exercise "natural caution" in the face of the continued coronavirus threat, which would stop them from "reengaging" with the economy. The UK economy suffered a 20.4% hit in the second quarter, bigger than any other European nation, and the Bank predicted it would shrink 9.5% this year and grow 9% next year. According to Bailey, the coronavirus crisi...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

'Budget will be a reset for our economy' Reeves tells IMF colleagues

'Budget will be a reset for our economy' Reeves tells IMF colleagues

Autumn Budget on 30 October

Linus Uhlig
clock 24 October 2024 • 2 min read
Advisers urged not to let clients 'act too soon' ahead of Budget

Advisers urged not to let clients 'act too soon' ahead of Budget

Communication is about ‘staying calm and keeping clients focused’

Isabel Baxter
clock 22 October 2024 • 5 min read
Why the Bank of England needs to stop over-sharing

Why the Bank of England needs to stop over-sharing

'We are used to the comments of central bankers moving markets'

Laith Khalaf
clock 17 October 2024 • 4 min read