The Bank of England (BoE) could consider lowering the cost of borrowing, the bank\u2019s Chief Economist, Andy Haldane, said on Monday.<\/p>\n\n\n\n
The move could come as a way of adapting to a possible economic shock due to the COVID-19 crisis.<\/p>\n\n\n\n
\u201cRoughly half of the roughly 25% fall in activity during March and April has been clawed back over the period since,\u201d Haldane told The British parliament.<\/p>\n\n\n\n
\u201cWe have seen a bounceback. So far, it has been a V. That, of course, doesn\u2019t tell us about where we might go next.”<\/p><\/blockquote>\n\n\n\n
The BoE will also have to consider how to tackle corporate debt issues, with quantitative easing seen as a possible option, as well as forward guidance.<\/p>\n\n\n\n
Haldane expects 25% of companies in the UK to face over-leverage problems.<\/p>\n\n\n\n
The British central bank is also considering lowering interest rates into a negative range, however, this would come with possible downsides, according to the chief economist.<\/p>\n\n\n\n
“There has been some fracturing of domestic and global supply chains, raising the costs of some goods and services. And it is possible a higher long-term equilibrium rate of unemployment could cause the earlier re-emergence of wage pressures.”<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"
The Bank of England (BoE) could consider lowering the cost of borrowing, the bank\u2019s Chief Economist, Andy Haldane, said on Monday. The move could come as a way of adapting to a possible economic shock due to the COVID-19 crisis. \u201cRoughly half of the roughly 25% fall in activity during March and April has been …<\/p>\n","protected":false},"author":10,"featured_media":31630,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[4707,36],"tags":[6967,6835],"class_list":["post-31629","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-breaking-news","category-market-updates","tag-boe","tag-uk"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/31629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=31629"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/31629\/revisions"}],"predecessor-version":[{"id":31653,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/31629\/revisions\/31653"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/31630"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=31629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=31629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=31629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}