Rising virus charges threaten financial system, says Bank of England

A man wearing a mask walks past the Bank of England in London Image copyright Getty Images

The Bank of England has warned that the latest rise in coronavirus instances may threaten the UK financial system’s restoration.

It additionally mentioned doubts concerning the UK’s future buying and selling relationship with the EU posed a threat, because it held rates of interest at 0.1% – a historic low.

It mentioned the financial system had recovered a lot of the output misplaced throughout lockdown however the outlook remained “unusually uncertain”.

It additionally signalled it had no plan to lift charges till the tip of the 12 months.

It mentioned it might wait till “significant progress” had been made in getting inflation again to the Bank’s 2% goal – one thing it doesn’t anticipate till early 2021.

The UK’s inflation price is presently at a five-year low of 0.2%.

“We expect interest rates to be no higher than 0.1% for the next five years,” mentioned Andrew Wishart, UK economist at Capital Economics.