The UK economy remains depressed. Its economic growth continues to slow as expected. The main reason, as we know, is the coronavirus pandemic and related lockdown measures. Besides, the ongoing dispute with the European Union over a trade agreement adds fuel to the fire. Britain's economy contracted again in May, but at a much slower pace than in April. Based on this data, Chris Williamson, IHS Markit's chief business economist, predicts an upturn in June as some pandemic-related restrictions have been eased. "However, the UK looks set to see a frustratingly slow recovery, given the likely slower pace of opening up the economy relative to other countries which have seen fewer COVID-19 cases," Williamson said. In light of this, the Bank of England is expected to cut its interest rates to below zero in the near future. BoE Governor Andrew Bailey noted he was less opposed to negative interest rates than before the coronavirus crisis escalated.
