UK economy set for sharp ‘V shape recovery’, says BoE chief economist

The UK’s economy has been crippled by the pandemic, but the Bank of England’s chief economist is optimistic the there will be a sharp V-shape recovery.

Andy Haldane who also sits on the Bank’s interest rate setting committee, believes this is due to a faster than expected rebound over the virus.

In a webinar speech on Tuesday, the chief economist said the economy recovery in the UK has come “sooner and faster” than predicted, with underlying strength from consumer spending in England.

Haldane said, “It is early days, but my reading of the evidence is so far, so V.”

Adding, “The recovery in both the UK and global economies has come somewhat sooner, and has been materially faster, than in the MPC’s May Monetary Policy Report scenario – indeed, sooner and faster than any other mainstream macroeconomic forecaster.”

BoE expects the GDP to now tumble by just 20% in the first 6 months of the year, which is less than the 27% previously predicted in May.