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According to the latest Reuters poll of 70 economists, the UK economy is likely to see the deepest recession in centuries due to the coronavirus pandemic. However, the Bank of England (BOE) is not seen driving the interest rates into the negative territory.

 Key findings

“The virtual halt in activity means the economy will contract 17.5% this quarter, the May 19-21 poll found.

In a worst-case scenario the economy will shrink 22.5% this quarter.

But the recovery will be stronger than previously thought and growth will soar to 11.9% next quarter assuming at least some lockdown measures are lifted.

Britain’s economy will contract 7.7% this year then grow 5.2% in 2021.

The poll said another 80-billion-pound increase would be announced on June 18.

Medians in the poll suggest rates will stay unchanged until at least 2022.”