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Deutsche Bank cuts UK forecast due to coronavirus

by LLB Reporter
5th Mar 20 2:40 pm

On Thursday, Deutsche Bank analysts slashed their forecast for the UKs economic growth to 0.5% for the year.

Due to the outbreak of coronavirus the banks economists have outlined a range of responses which includes two cuts in interest rates by the Bank of England by May 2020.

Keith Temperton, a trader at Tavira Securities said, “There is a certain amount of fear and nervousness in the market.

Temperton added, “Markets might want to push for another Fed rate cut.The European Central Bank, on the other hand, doesn’t have a lot of room.

“Once volatility markets are trading in the mid-30’s, things become very speculative.”

Markets chief fear index hit 34.91 on Thursday, up by 9%.

On Thursday, Goldman Sachs warned the coronavirus outbreak will push the UK economy to the brink of a recession within months.

The global investment bank forecast the UK’s output is set to contract by 0.2% between January and March.

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