Economics

U.K. Economy Faring Better Than Feared But With Cliff Edge Ahead

  • BOE’s chief economist, Barclays CEO warn of unemployment risk
  • Investors have renewed bets on negative interest rates at BOE

Pedestrians pass beneath British Union flags on Oxford Street in central London.

Photographer: Simon Dawson/Bloomberg
Lock
This article is for subscribers only.

The U.K. is experiencing a stronger recovery than expected from the coronavirus crisis but will face a major hurdle when government support programs for jobs are wound down, according to two of the nation’s top financial professionals.

Bank of England chief economist Andy Haldane, the only policy maker to vote against an expansion of the institution’s bond-buying program this month, said economic output has dropped less than estimated and consumer spending appears to be picking up.