Remarks by BOE governor, Andrew Bailey, cited by Reuters
- Sees 12% fall in UK Q1 GDP as compared to 2019
- Down 4% as compared to 2020
- UK inflation will remain below 2% threshold
- But will initially flare in the short-term due to support measures
Nothing out of the ordinary here ahead of the BOE policy meeting later this week. I would say that his comments yesterday here were more substantial as they reflected more optimism, which could be the case on Thursday as well.
That said, expect Bailey & co. to reiterate two-way risks to the economy and that negative rates are still an option but not in the works for the time being.
