Bank of England Deputy Governor Ben Broadbent said a recovery in Britain’s economy after the government relaxes its coronavirus lockdown might be held back by people remaining cautious.
“I think it is certainly conceivable, it is certainly possible,” Broadbent said when asked about a possible rapid bounce back in the economy during an online presentation to businesses on Monday.
“I think the question that we will have to think about is whether behavioural responses of people mean that even if the government-imposed lockdown is lifted, demand may remain weak in some areas just out of people’s natural caution.”
Broadbent said a 35% contraction in Britain’s economy in the second quarter, included in a scenario suggested by the country’s budget forecasters due to COVID-19, was possible, echoing comments by BoE Governor Andrew Bailey last week.
