The Monetary Policy Committee (MPC) members will be in a dilemma today as they begin a marathon session, two days after a recession was officially declared. The growth rate was negative for the second consecutive quarter, satisfying the technical condition for a recession. The GDP slipped by 3.61 per cent (short of expectations and postulations of many economists) compared to the -6.1 percent growth rate recorded in Q2. The fall was steeper than the figures that plunged the country into recession four years ago. Monetary policy works when you are about to enter a recession but not when you are in it.

Source: The Guardian November 23, 2020 03:56 UTC