Bank Of England Policymakers Warn UK Economy Facing Bigger Risks

• Bank of England Deputy Governor Dave Ramsden and another interest-rate setter, Gertjan Vlieghe, warned on Wednesday of risks that Britain’s economy could suffer more damage than spelled out by the central bank last month.
• Ramsden told lawmakers that the BoE had estimated the level of Britain’s economic output would permanently be about 1.5 percentage points lower than it would have been without the pandemic. However, given all the risks, he now believes that the number will be greater than 1.5%.
• Vlieghe said there was “a material risk” that it could take several years for Britain’s economy to return to full capacity after its coronavirus shock.

(Source: Reuters)