“For me, risk of a permanent hit to GDP from the pandemic is likely to be above 1.5% points,” Bank of England (BOE) Deputy Governor Dave Ramsden told parliament while delivering the BoE’s annual report on Wednesday, as reported by Reuters.
Additional takeaways
“Likely there will be a semi-permanent effect from this shock on the commercial property sector.”
“Commercial real estate will probably see less investment in the immediate future.”
“Open question whether this will result in a more productive economy.”
“Possible investment in retail will shift into the capital from labour, could result in greater productivity.”
“UK inflation expectations have recovered.”
“Inflation expectations appear well-anchored, the MPC can take some comfort.”
“Comfortable with where inflation expectations are at the moment.”
Market reaction
The GBP/USD pair remains under heavy bearish pressure and was last seen losing 0.53% on the day at 1.3310.
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