Economics
Bank of England’s Ben Broadbent Says U.K. Economy May Be Better Than It Looks
- Notes that retail spending strong despite weak overall growth
- BOE official gives speech on composition of spending in Covid
Data from Barclaycard showed a surge in online spending in December even as high street retailers and hospitality were hit by Covid-19 restrictions in the vital holiday period.
Photographer: Anthony Devlin/BloombergThis article is for subscribers only.
The U.K. economy could be stronger than output data suggest as consumers switched their spending in response to the pandemic, according to Bank of England Deputy Governor Ben Broadbent.
The difficulty in responding to large and rapid shifts in demand may mean the impact on inflation may also have been softened, he said in a webinar Tuesday. However, he said the anticipated steep rise in unemployment when government furlough programs wind down indicates that the central bank’s policy response was appropriate.