Economics
Lockdown Boosted Savings, But BOE Doubts Much More Will Be Spent
- Wealthy households may have held onto $352 billion in pandemic
- Survey shows 70% are likely to keep the cash after lockdown
This article is for subscribers only.
Bank of England policy makers are sounding a note of caution about how much excess savings built up during Covid-19 lockdowns will be spent once the economy reopens.
The central bank’s Chief Economist Andy Haldane has estimated that as much as 250 billion pounds ($352 billion) will accumulate in the accounts of consumers who were unable to go on holiday, shop or eat out as much as usual. The pace of the recovery depends on whether they spend it or hold onto the savings.