Bank of England (BoE) Governor Andrew Bailey said after talking about negative interest rates last hour, “I don’t think the Kovid will cause any structural changes in the UK economy.”
BoE does a lot of work with banks to determine whether negative interest rates are workable.
It is important that banks continue to lend when the economy improves.
BoE is at the lower end of the range on Kovid’s impact on the economy.
It is difficult to know whether people will fall into a buying frenzy with accumulated savings after Kovid or will they hold back.
Most likely, there will be a mixture of consumer behavior in response to a high level of savings.
I am not going to comment on Scottish independence, but there is a connection between Britain’s political uncertainty and corporate investment.
There is some evidence that the last Scottish independence referendum weighed on investment.
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