The Bank of England Governor Andrew Bailey has warned that there will be a scarring effect from the Covid-19 crisis.
A month ago, still very new in his job, Mr Bailey talked about a ‘V’ shaped economy, crash but then recovery, now he doesn’t seem so confident.
The Office of Budget Responsibility had warned that the UK economy could contract by 35 per cent as a result of this crisis. Today, Mr Bailey said: “I don’t think there is anything implausible about a second-quarter number of that nature.”
He also warned of long-term consequences of the Covid crisis, suggesting scarring of the economy and a persistent downturn.
He also warned of further economic damage if the lockdown ended too soon, increasing the chances of a second lockdown.
At today’s government press briefing, Dominic Raab, the First Secretary of State and Foreign Secretary said that 559,935 people have been tested for Covid, 9,133,495 have tested positive and 18,100 have sadly died.
In fact, the UK saw 763 confirmed deaths today. It is far too high, and tragic, of course, but it is now 12 days since the daily confirmed death total reached a new high.
Yesterday, the US experienced 2,804 deaths, its highest amount so far. The UK saw the second highest number of deaths.
Also, at today’s press briefing was the Chief of Defence Staff General Sir Nicholas Carter. He said that this crisis has represented the ‘singe biggest logistics challenge of my career.”