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UK unemployment to double and economy to shrink by 14%, warns Bank of England

Bank outlines scale of Covid-19 shock in 2020 with forecast for deepest recession in 300 years

The Bank of England has warned the British economy could shrink by 14% this year and unemployment more than double by spring as the coronavirus causes the deepest recession in modern history.

Leaving interest rates on hold at a record low of 0.1% as the economic crisis unfolds, the central bank said economic activity across the country had fallen sharply since the onset of the global health emergency and the lockdown measures to contain its spread.

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