BANK WARNS OF ‘LONG HARD’ RECOVERY

THE Bank of England warned yesterday that the economy faces a “longer and harder” recovery from Covid-19 than expected.

Governor Andrew Bailey said many trade indicators are negative and consumer confidence could still be paralysed by uncertainty.

He said: “There are reasons to believe that economic activity will return at a faster pace than in many past recessions.

“But this depends on how the measures continue to be eased, what degree of natural caution is shown by people, and how much longer-term damage is done to the economy.”

He added: “The risks are undoubtedly on the downside for a longer and harder recovery.

“It is also possible that the pace at which activity recovers will be limited by caution among households and businesses, even as social distancing measures are relaxed.”