Friday, November 6, 2020

New Phase Lockdown Now Begins - Rishi Sunak Announces 'Furlough Scheme' Changes!

 The UK Finance Minister announced on Thursday that the ‘furlough scheme’ employment assistance that subsidizes salaries to those who are unable to work following Covid-19 will be extended until March 2021.

Rishi Sunak commented further on Britain's economic situation. According to him, the economic recovery in the UK is slowing down and economic risks tend to contract. He added that the uncertainty of current issues has hampered economic development and there is a priority to provide assistance to those in need throughout the winter.

Therefore, on that basis, the furlough scheme will be extended until the end of March. However, the policy will be reviewed in January after examining the economic situation at that time.

Elsewhere, the Bank of England (BOE) decided to keep the interest rate unchanged at 0.10% and increase its bond-buying program by £ 150 billion to £ 875 billion during the November session policy meeting.

The pound jumped to a price of 1.3073 today and at the same time was also influenced by cautious market sentiment optimistic that Democrat Joe Biden would win the US election which had driven the US dollar.