For the Bank of England, everything now is about damage limitation

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UK plc has tanked at twice the financial crisis rate but the bank has only one meaningful weapon left – QE

Back in August the Bank of England was relatively chipper about the economy. It was the month of “Eat out to help out”, sectors that had been locked down as a result of the pandemic were opening up and growth was exceeding expectations.

Three months on, the outlook – courtesy of a second wave of Covid-19 – has become much darker. Instead of the 5.5% economic expansion it had been pencilling in for the final three months of 2020 Threadneedle Street is assuming a 2% decline.

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