AVN 63.71 Increased By ▲ 0.02 (0.03%)
BOP 8.77 Decreased By ▼ -0.01 (-0.11%)
CHCC 134.55 Increased By ▲ 0.05 (0.04%)
DCL 10.01 Decreased By ▼ -0.04 (-0.4%)
DGKC 108.01 Increased By ▲ 0.01 (0.01%)
EFERT 64.27 Decreased By ▼ -0.18 (-0.28%)
EPCL 41.21 Decreased By ▼ -0.09 (-0.22%)
FCCL 21.00 No Change ▼ 0.00 (0%)
FFL 15.10 Increased By ▲ 0.05 (0.33%)
HASCOL 15.05 Decreased By ▼ -0.03 (-0.2%)
HBL 130.50 Decreased By ▼ -0.60 (-0.46%)
HUBC 81.75 Increased By ▲ 0.13 (0.16%)
HUMNL 7.35 Decreased By ▼ -0.05 (-0.68%)
JSCL 24.29 No Change ▼ 0.00 (0%)
KAPCO 28.49 Increased By ▲ 0.14 (0.49%)
KEL 3.70 Decreased By ▼ -0.01 (-0.27%)
LOTCHEM 11.72 Decreased By ▼ -0.03 (-0.26%)
MLCF 41.98 Increased By ▲ 0.13 (0.31%)
OGDC 93.20 Decreased By ▼ -0.13 (-0.14%)
PAEL 32.90 Decreased By ▼ -0.02 (-0.06%)
PIBTL 12.76 Decreased By ▼ -0.10 (-0.78%)
PIOC 95.00 No Change ▼ 0.00 (0%)
POWER 9.75 Decreased By ▼ -0.02 (-0.2%)
PPL 83.50 Decreased By ▼ -0.10 (-0.12%)
PSO 200.02 Increased By ▲ 0.02 (0.01%)
SNGP 56.52 Decreased By ▼ -0.08 (-0.14%)
STPL 13.15 No Change ▼ 0.00 (0%)
TRG 46.90 Increased By ▲ 0.30 (0.64%)
UNITY 23.05 Increased By ▲ 0.05 (0.22%)
WTL 1.04 Decreased By ▼ -0.01 (-0.95%)
BR100 4,133 Decreased By ▼ -155.2 (-3.62%)
BR30 21,019 Decreased By ▼ -858.48 (-3.92%)
KSE100 39,888 Decreased By ▼ -1298.86 (-3.15%)
KSE30 16,750 Decreased By ▼ -546.72 (-3.16%)
COVID-19 TOTAL DAILY

LONDON: Bank of England Governor Andrew Bailey said there is a significant risk of further disappointments to UK economic growth, and that the country faced unprecedented uncertainty as coronavirus cases began to climb again.

Britain's economy shrank by 20% in the three months to June, the biggest drop of any large advanced economy, and Bailey reiterated that he expected output at the end of the third quarter was 10% below its level at the end of 2019.

"Ten percent is still a huge gap, let's be clear on that," Bailey told an online seminar for central bank governors hosted by the Group of Thirty, a panel of economic policymakers and senior bankers on Sunday.

"We're operating at an unprecedented level of economic uncertainty. Of course, that is heightened now by the return of COVID.... The risks remain very heavily skewed towards the downside," he added.

The number of new COVID-19 cases in Britain has surged in recent weeks, forcing the government to shorten bar and restaurant opening hours and limit the extent to which people can meet outside of work or school. Sticking closely to previous messages on the outlook for policy, Bailey said the best approach was to act aggressively, rather than cautiously, in the face of uncertainty.

Many economists expect the BoE to announce further bond purchases on Nov. 5 following its next policy meeting, on top of the 310 billion pounds ($400 billion) of asset purchases already underway since the start of the pandemic.

Choosing the right policy tools would be important in future as the effectiveness of both quantitative easing and negative interest rates depended on the state of the economy and the structure of the financial system, Bailey added. "Our assessment of negative interest rates, from the experience elsewhere, is that they probably appear to work better in a more wholesale financial market context, and probably better in a nascent economic upturn," he said.