Comment from Chief Economist: Bank of England Interest Rate cut

“The Bank of England’s decision to cut interest rates by a further 15 basis points to a new all-time low of 0.1% and the increased Quantitative Easing budget indicates the severity of the current situation. Although the central bank is launching more monetary stimulus and the government has announced new fiscal measures worth £330bn (equivalent to a sizable 15% of GDP), the economic damage caused by the coronavirus pandemic will be sizable. Dun & Bradstreet’s baseline scenario for 2020 is now based on UK real GDP growth declining for the first time since the global financial crisis. The simultaneous supply and demand shocks are likely to cause the UK to fall into recession over the coming months, cross border trade and investment will be impacted severely and a V-shaped recovery looks increasingly unlikely. This means that the impact of the coronavirus outbreak could be felt by businesses well into 2021.”

Markus Kuger, Chief Economist at commercial data and analytics firm, Dun & Bradstreet