Bank of England deploys more stimulus as lockdown begins

The Bank of England has increased its monetary stimulus by a bigger than anticipated 150 billion pounds ($195 billion) as it tries to boost the economy through new lockdown measures.In a statement released Thursday, the bank’s rate-setting panel said its challenge is to respond to the economic and financial impact of the resurgence of the coronavirus, which has led to widespread restrictions across the UK. A four-week lockdown began Thursday in England that will keep closed all shops selling items deemed to be non-essential, such as books and clothes. The other nations of the UK — Scotland, Wales and Northern Ireland — have also announced wide-ranging restrictions on economic activity.

The latest restrictions will batter an economy that had been just recovering from the sharp recession caused by the spring lockdown. In forecasts accompanying its decision to increase its stimulus, the central bank said it expects the economy to shrink again in the fourth quarter but to start rebounding at the beginning of 2021 - assuming the restrictions are eased. The Bank of England’s policymaking panel said the outlook for the economy remains “unusually uncertain” because of the pandemic.