The Bank of England gear up to provide additional stimulus towards economic recovery from the pandemic amid a rebound in inflation in September, media reports said. The UK’s economy continues to falter towards economic revival.
It is reported that the government has been compelled to issue fresh lockdown in some parts of the country due to a surge in fresh Covid-19 infections. The lockdown is expected to be stringent in the coming days.
James Smith at ING, told the media, “The resurgence of COVID-19 across the UK and the resulting restrictions mean the recovery is set to stall. It now looks fairly inevitable that the Monetary Policy Committee will top-up its asset purchase programme. That would give policymakers scope to continue making purchases until early summer next year if the pace of purchases stays broadly similar.
The UK’s economy contracted a historic 19.8% in the second quarter due to the impacts of the pandemic which forced businesses to close and citizens to stay inside their home.
It is reported that the country’s economy is expected to expand 2.6 percent this quarter and 1 percent in the next. However, Reuters polls predicted a 16.7 percent growth last quarter.
The poll which involved 78 economists said that the UKs economy will contract 10 percent but expand 6.1 percent in 2021 compared to a -10 percent and + 6 percent forecasted last month.
Asian countries such as the UAE is adhering to stringent regulation to contain the spread of the virus. However, the global economy is still in the recovery phase where there are possibilities of rebound in fresh infections.