Bank of England Governor Andrew Bailey has appeared before the Treasury Committee and warned that the UK’s outlook is uncertain after being hit by the coronavirus and any future forecasts are difficult to make.
The UK economy in the second quarter suffered a 20.4% hit which is larger than any other European nation, the Bank of England predicted this year it would shrink 9.5% and next year grow 9%.
Bailey said: “the Bank's predictions did not include local lockdowns and a risk of a second coronavirus wave. The biggest fears are the public taking natural caution which would stop them re-engaging with the economy”
We have suggested all along that a combination of Brexit and Coronavirus could mean that the UK has an extended recession and it could take 10 years for the UK to recover.