Market Commentary – September 2020

UK The UK officially entered recession as Q2 GDP showed the economy to have contracted 20.4% between April and June after falling 2.2% in the first quarter of 2020. None of this came as a surprise to markets as it was wholly expected given circumstances, but the sheer scale of the decline in economic output is rather frightening. Data also showed the economy to have grown by 8.7% in June following May’s disappointing 1.8% monthly rise, showing the economy to be recovering at an increasing pace as lockdowns are lifted and activity begins to return to some level of normality. Bank of England governor now actively talking about using negative interest rates as the UK economy starts to recover,

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