Economy: Bank of England Forecasts
Debate between Baroness Penn and Lord Marland
Baroness Penn
I will attempt to do so. In terms of optimism, or otherwise, about the speed of the recovery, the OBR’s and Bank of England’s scenarios are not those of the Government. We do not make our own economic forecasts. I would also point out that they are scenarios rather than forecasts, and the Bank of England said that the risk in its scenario was probably more on the downside. The Government are focused on providing support now for jobs and businesses so that they are protected during this time and so that we can recover as quickly and as safely as possible.
Lord Marland (Con)
My Lords, we welcome the positive report by the Bank of England—it has not always been so positive. However, we must be mindful that it did not take into account the extension of the furlough scheme until October and its total cost of £100 billion. Would my noble friend the Minister like to comment on that and perhaps ask the Bank of England to revise its estimation, given the changes to the government handouts that have just happened?
Baroness Penn
I believe that the Bank’s scenario took into account the gradual unwinding of the lockdown and of the support schemes matched to it, completed by the end of quarter 3. However, the Bank makes its own decisions about any scenarios or forecasts that it produces to inform its own decision-making and policy-making.