Credit won’t hold back the recovery, more to come from BoE

There can be little doubt about how bad the recession will be now that the Bank of England has joined us and the OBR in forecasting that GDP will fall by 25-30%. But even so UK banks should be able to absorb the £80bn of losses that the Bank of England expects and be able to continue lending over the next few months, especially if the Bank of England expands its QE program as we expect.

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