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Monday, April 19, 2021

UK Economy is Heading Back into Recession

The Bank of England is giving another £150 billion ($195 billion) into the UK economy after they’ve warned the possibility of a double-dip recession due to the coronavirus pandemic and Brexit.

The Bank of England is giving another £150 billion ($195 billion) into the UK economy after they’ve warned the possibility of a double-dip recession due to the coronavirus pandemic and Brexit.

According to the UK central bank on Thursday, they would keep the same interest rates at 0.1% but they would have to elevate its purchases of the UK government bonds to £875 billion ($1.1 trillion).

The preventive measures that were implemented to tackle the rapid increase in Covid-19 cases would negatively impact consumer spending to a higher extent than what the bank has predicted in August, “leading to a decline in GDP” in the fourth quarter of this year, added the UK central bank.

The UK economy has expected it to rebound in the third quarter after experiencing the greatest GDP fall of any major economy. 

In the first three months of 2020, it also shrank by 2.5%.

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