Bank of England ‘Ready to Act’ as Economy Shrinks Record 20%

Governor of the Bank of England Andrew Bailey has said he is “ready to take action” to help the British economy weather the coronavirus storm.

Mr Bailey made the statement after figures showed the British economy shrank by 20.4%, the largest contraction in one month since records began.

Reflecting the effects of the lockdown on the country’s economy, the Governor said, “we are still very much in the midst of this.”

“Obviously it’s a dramatic and big number, but actually it’s not a surprising number,” he added.

The contraction in the UK economy is now three times greater than the decline seen throughout 2008 to 2009, during the global financial crisis.

Mr Bailey said he was hopeful of Britain’s ability to bounce back over time, adding that there were already “signs of the economy now beginning to come back into life”.

Chancellor Rishi Sunak commented that life would get “a little bit more back to normal” when shops re-open next Monday in England. Meanwhile shops in Northern Ireland have already resumed trading, and Scotland and Wales have respective timetables for easing restrictions.