The UK central bank said the economy was under pressure again due to the lockdown implemented after the second wave of coronavirus in the UK, causing UK GDP performance to be worse than anticipated in the first quarter of 2021
- Bank of England also maintains quantitative easing bond buying program at $ 1.2 trillion
- BOI warns that UK may suffer more damage than anticipated due to rapid progression of corona infection
UK central bank Bank of England (BOI) has also not made any changes in its main interest rate on Thursday after the US central bank Federal Reserve left the main interest rate unchanged and it has so far recorded a record 0.1 per cent Maintained at a lower level. The central bank also did not change its quantitative easing bond buying program and retained it at £ 895 billion ($ 1.2 trillion). The BOI also warned that the UK could suffer more harm than anticipated due to a rapidly growing case of coronavirus infection.
The UK central bank said the economy was back under pressure due to the lockdown implemented after the second wave of coronaviruses in Britain. Due to this, UK GDP performance in the first quarter of 2021 will be worse than anticipated. Last month, the BOI said that the UK could be in recession for the second time in the fourth quarter of 2020 (October – December).
UK GDP may fall by more than 1% in December quarter
BOI said GDP could fall by more than 1 percent in the December quarter. This means that GDP in 2020 may decline by 11 per cent over 2019. If this happens, it will be the biggest recession of 300 years for Britain.
US Fed maintains its core rate in the range of 0–0.25%
Significantly, on Wednesday, the US central bank Federal Reserve also did not change the main interest rate. The Federal Open Market Committee (FOMC) maintained its benchmark rate in the range of 0% to 0.25%. The Fed also indicated that it would keep its rate close to zero until 2023 to support the second phase of recovery between vaccination campaigns.
ब्रिटेन के केंद्रीय बैंक ने कहा कि ब्रिटेन में कोरोनावायरस की दूसरी लहर के बाद लागू हुए लॉकडाउन के कारण अर्थव्यवस्था फिर से दबाव में आ गई है, इसके कारण 2021 की पहली तिमाही में भी ब्रिटेन की GDP का प्रदर्शन अनुमान से ज्यादा खराब रहेगा