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"While it will not be the UK's deepest downturn, it will be the longest since records began in the 1920s, the Bank said." They didn't say it would be the worst
by _puk 4y ago
"While it will not be the UK's deepest downturn, it will be the longest since records began in the 1920s, the Bank said."
They didn't say it would be the worst, just the longest.
They've also indicated that they aren't going to just keep madly raising interest rates, but expect to top out by next autumn:
"The Bank has done something it doesn't normally do in the published minutes of its decisions - it has given guidance that seems to suggest a peak in interest rates of about 4.5% next autumn.".
So it's far from scare mongering (on the bank's part, can't control how the media portray it), and more "this is not going to be a quick fix, we have some idea of how bad it'll get, and it's not as bad as the 80s. Please don't panic".
Quite a measured response in reaction to some bad news IMO.
- brookst 4y agoI fail to see any upside from the bank forecasting a long recession. It's hard to believe it's a high accuracy forecast; the central tenant of economies is that they usually do what you don't expect. Agreed with everything else you said. "This is not going to be a quick fix, we have some idea of how bad it'll get, and it's not as bad as the 80s. Please don't panic" is perfect phrasing. But saying it will be the longest recorded absolutely is fear mongering, and partly self-fulfilling.