Thread by @gk_ben

Fantastic, careful @bankofengland analysis in monetary policy + financial stability reports. I know how much hard graft goes into these in normal times. Well done all!👏👏👏

Well worth a read (links at end) - much not UK specific... 1/n
#HouseholdFinance #CoronaVirusIndicators

Reports acknowledge huge uncertainty in macro forecasts. Main scenario sees massive drop but relatively sharp recovery - let's hope they are right... 2/n

Huge uncertainty among other forecasters too... 3/n

I thought this was an excellent graphic to present impacts across sectors of economy... 4/n

Stress-testing scenario with higher unemployment results in large losses especially on consumer credit portfolio but banks have enough capital to withstand... 5/n

Good to see use of VISA data showing how consumer spending fallen off a cliff... 6/n

In spite of monetary policy measures credit constraints have tightened - but find rate cuts are being passed through to variable-rate mortgages... 7/n

These translate into a large drop in mortgage product offerings to high LTVs + drop in new credit credit lending (new lending - repayments)... 8/n

Survey measures show households reporting increased use of consumer credit debt, increased financial distress distress + expecting situation to worsen... 9/n

Reports here (I'm not sure why the committees are meeting at park benches but it made me lol) n/n

Monetary Policy Report
bankofengland.co.uk/-/media/boe/fi…

Financial Stability Report
bankofengland.co.uk/-/media/boe/fi…

Nick Bloom-inspired survey of business uncertainty bankofengland.co.uk/decision-maker…

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