Economics
BOE’s Haskel Warns Reopening Too Early Won’t Help the Economy
- Fear of infection risks keeping activity stuck after lockdown
- Comments come as Niesr estimates lockdown cost at $250 billion
A businessman walks along a street in the City of London on July 20.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
Reopening the U.K. economy too early would worsen the damage from Covid-19, according to Bank of England policy maker Jonathan Haskel, citing the U.S. experience as an example.
The economy risks “getting stuck” as the fear of infection lingers after the lockdown lifts, with demand likely to remain weak due to the combined concerns about health and unemployment, he said on a webinar Thursday. The outlook will crucially depend on high-quality data and the development of effective testing.