Kayıt Tarihi: 13-Kasım-2019
U.K. Recovery Still Looks V-Shaped, BOEs Haldane Says
|Gönderen: 30-Temmuz-2020 Saat 20:05 | Kayıtlı IP
The U.K.s recovery is still looking V-shaped and the
economy has clawed back about half the output it lost in
March and April, Bank of England chief economist Andy
Haldane said Monday.To get more news about
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This plainly has been a recovery and a pretty sharp
one, he told lawmakers on Parliaments Treasury
Committee. As has been the case of course globally --
in that sense we have seen a bounce-back, so far it has
been a V. That does of course not tell us where we might
Haldane dissented at the BOEs June meeting, voting
against expanding asset purchases. Hes since come
across as more upbeat about the economy than Governor
Andrew Bailey and fellow policy maker Silvana Tenreyro,
who will also address lawmakers this afternoon.
Haldane said the economy likely hit its floor in
April, and about half of the roughly 25% fall in activity
in March and April has been regained. But he noted that
labor market figures are understating the unemployment
problem and policy makers are monitoring the job
Were by no means out of the woods on activity or
jobs, but materially better than expected two or three
months ago, he said.
BOE officials will publish updated forecasts at their
next policy meeting on Aug. 6. They have been reviewing
tools at their disposal, including negative interest
rates, after cutting rates to a record low 0.1% and
expanding their bond-buying program.
There is plainly less room for monetary maneuver as
a result of this crisis, be that interest rates or
further QE, Haldane said. But less room for maneuver
is not no monetary maneuver at all.
Negative interest rates could potentially encourage
further borrowing, though they would also have downsides
like a squeeze on banks margins, he said.