The Bank of England warns of “the worst economic performance in 300 years”

The Bank of England warns that the UK economy could suffer the worst in 300 years from the impact of the pandemic.

The Bank of England warns of "the worst economic performance in 300 years"

The central bank said the economy could shrink by 14 percent in 2020, based on estimates of easing isolation in June, pushing the country into the deepest recession ever.

Unemployment could reach nearly 10 per cent, as isolation from the coronavirus continues to damage the economy.

The bank said the COVID-19 pandemic “has sharply reduced jobs and incomes in the UK”.

The bank’s Monetary Policy Committee, which sets interest rates, announced that the rates would remain unchanged at a historic low of 0.1%.

Despite the bank’s efforts to protect the economy from a downturn in economic growth as a result of the pandemic, thousands of people have been laid off over the past week by companies such as British Airways, Virgin Atlantic and Debenhams, and more than six million employees have been sent on unpaid leave, where the government pays 80% of the wages of workers who would otherwise not have been employed during the blockage.

However, in its latest financial stability report, the Bank claims that British households entered the lockdown in a stronger position than before the 2008 financial crisis, thanks to extensive support packages, including weekends on mortgages and credit cards.

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