UK's Sunak says BoE forecasts show improvement, but hardship lies ahead
[LONDON] British finance minister Rishi Sunak said on Friday the Bank of England's new economic forecasts represented an improvement on the old ones, but he acknowledged that they show hardship lies ahead.
On Thursday the BoE said the economy would not recover its pre-pandemic size until the end of 2021, slightly later than its previous estimate, but its short-term projections were less grim.
"It's an improvement from when they last did their forecast," Mr Sunak told BBC News.
"But... they are right to say that hardship lies ahead."
Mr Sunak also said he was optimistic a lot of the emergency government-backed loans given to companies during the pandemic will be repaid, and that a trade deal with the European Union was still possible in September.
"On Brexit, as you will have heard recent reports, we remain confident that it's possible to get a deal in September," he told Sky News in another interview.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Philippines’ Recto sees rate-cut delay risk if peso sinks to 59
Ecuador president declares state of emergency over energy crisis
US Senate has agreement on Fisa reauthorisation, will vote on Friday night, Schumer says
US expects to finalise new Aukus trade exemptions in next 120 days
IMF concerned about debt, fiscal challenges facing low-income countries
Bank of Japan’s Ueda says ‘very likely’ to hike rates if inflation keeps rising