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Bailey asked on impact of Omicron variant

BOE

He says that the direct effects of Covid have attenuated. The last lockdown's effect on GDP was not as big as the first lockdown. The first impact of Covid was to increase consumption of goods rather than services - pushing up global goods consumption. In western world direct impact attenuated by vaccines and boosted doses. But places like China will shut down whole sections of the economy, which has impact on supply chains (second direct impact).

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