The UK economic outlook looks bleak and this will prompt the Bank of England (BoE) to step up its bond purchase stimulus program next week for the third time since the outbreak of the Covid-19 pandemic.
The central bank is expected to increase its total asset purchase program by 100 billion pounds again on November 5 based on an economic survey from Reuters.
If this is done then the total asset purchase program will reach $ 1.10 trillion which is almost double the level before the pandemic, forcing the BoE to take aggressive measures.
But some analysts are of the view that Governor Andrew Bailey and policy makers are unlikely to take big steps such as reducing interest rates below zero.
In a separate report, Moody’s analysis found that UK countries are still facing the biggest economic contraction in the G20. This indicates that the impact of Covid-19 has had a profound impact on the UK economy.
Moreover, there is a view stating that although trade negotiations with the European Union are done on time but the risk of new obstacles remains.
On the positive side, in August, the BoE reported that Britain's economic output is likely to re-record pre-pandemic GDP readings in the second half of 2021.
The pound sterling continued to strengthen 0.36% to 1.3070.
