Tough restrictions kept in place after the November lockdowns are slowing Britain’s economic recovery, the Bank of England has warned.
The experts who set the bank’s interest rate said measures covering huge swathes of the UK were stricter than they had expected and will weaken growth in the coming weeks and months.
Another 4.2m people will be put into Tier 3 in England from tomorrow while only a few places saw an easing of restrictions.
A man stands by a closed shop in Leicester. Bank of England experts said measures covering huge swathes of the UK will weaken growth in the coming weeks and months
The monetary policy committee yesterday held the base rate at the historic low of 0.1 per cent, the lowest level in 400 years.
Economic output grew by 0.4 per cent in October, the bank said, but it still remained around 8 per cent lower than at the end of 2019.
And although the recovery so far has been stronger than expected, it is feared the economy shrank again in November.
The Bank said: ‘The successful roll-out of vaccines should support the gradual removal of restrictions, although it is less clear how this prospect will affect the immediate economic behaviour of households and businesses.’
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