BoE: Unemployment is likely to rise rapidly across a range of economies

"There is little evidence as yet to assess the precise magnitude of the economic shock from Covid-19," the Bank of England noted in the minutes of its Monetary Policy Committee meeting. 

"It is probable that global GDP will fall sharply during the first half of this year," the BoE added. "Unemployment is likely to rise rapidly across a range of economies, as suggested by early indicators."

The BoE further noted that the nature of the economic shock from Covid-19 is very different from those to which the MPC has previously had to respond. "The scale and duration of the shock to economic activity, while highly uncertain, will be large and sharp but should ultimately prove temporary, particularly if job losses and business failures can be minimised," the statement read.

Market reaction

The GBP/USD pair retreated slightly from highs and was last seen trading at 1.1957, still adding 0.6% on a daily basis.