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“We think the UK economy at the end of the third quarter is about 9-10% below where it was at the end of last year,” Bank of England (BoE) Governor Andrew Bailey said on Tuesday, as reported by Reuters.

Bailey further noted that the does not expect to see a V-shaped recovery going ahead. “If costs of borrowing are below economy growth rate, there is room for the government to use that,” Bailey added.

Market reaction

The GBP/USD pair showed no reaction to these comments and was last seen losing 0.7% on a daily basis at 1.2973.