The pound is up against the euro this morning, after the Bank of England voted to keep its interest rates unchanged and to continue its quantitative easing programme. With two policymakers calling for QE levels to be increased, investors are also expecting more asset purchases in the coming months.
The Bank has, however, also warned of a deep recession to come, saying that it appears that the economy will shrink 14% this year, based on a model of social distancing being phased out from June until September. Nonetheless, it does expect growth to bounce back by an equally record-breaking 15% in 2021.
Sterling had previously dropped last night following data that showed construction to be declining at its fastest pace on record. However, these losses were reversed this morning.
Boris Johnson will chair the Cabinet this morning, where he is said to be discussing plans for the easing of lockdown, with an announcement expected to come on Sunday.
