MNI BRIEF: BOE Broadbent: Jobless Rate Key As Econ Double Dips

With the UK likely to see negative growth in both fourth and first quarter, fueling media reports of a 'double-dip' recession, the unemployment rate rather than these output fluctuations will be key in determining what happens to demand, Bank of England Deputy Governor Ben Broadbent said.

"The lockdowns mean that, on a quarterly basis, GDP is likely to have fallen in the fourth quarter of 2020 and to do so again in 2021Q1," he said but "what matters more .. are developments over time in the labour market." With the BOE expecting unemployment to rise as the Treasury withdraws its income support schemes early in Q2, Broadbent said that this would push up on the savings rate, dampening consumption.