BoE's Bailey: Economic activity in Q3 probably 7-10% lower than it was pre-COVID

Since May, there has been quite a sharp and fast recovery in the UK, Bank of England (BoE) Governor Andrew Bailey said on Tuesday but added that there are signs that the recovery will not be as fast going forward, as reported by Reuters.

Additional takeaways

"Recovery has been uneven."

"Q3 recovery is a bit ahead of where we thought it would be in August."

"UK economic activity in Q3 probably 7-10% lower than it was pre-COVID."

"Level of activity at end of Q3 probably higher than 7-10% below pre-COVID range."

"Investment still looks very weak."

"Risks include COVID, Brexit talks, US-China trade relationship."

"Labour market is one of the hardest things to assess."

Market reaction

The GBP/USD pair edged slightly lower with the initial reaction and was last seen gaining 0.15% on the day at 1.2845.