As a result of the economic and financial crisis from the COVID 19 pandemic, the Bank of England made the decision to lower interest rate to a historic low at 0.10%.
This would be the third time since the COVID-19 pandemic began that the interest rates will be lowered by the bank.
The bank disclosed that it expected the country’s Gross Domestic Product (GDP), to contract by 3% in the first quarter of 2020 and contract further by 25% by the second quarter of 2020.
According to the bank, the entire GDP of the country for the year 2020 is expected to contract by about 14% before strongly rebounding by 2021.
Unemployment rate in the country has increased exponentially and is expected to increase to about 9% in the second quarter of 2020 and is also expected to decline by about 7% by 2021.
The Bank of England’s Monetary Policy Committee (MPC) warned that the economy could take an unprecedented turn. The turn which would depend solely on the evolution of the pandemic.
The bank also disclosed that the inflation rates could also fall by 1% in the coming months and May recovers by 2% by 2022.
