The sharp falls in equity prices show that things are moving fast and this week we revised down our 2020 GDP growth forecast to reflect the damage to the global economy from the coronavirus. But the clear risk is that things get worse before they get better and that equity prices continue to fall rapidly. If so, there would be a chance that the Bank of England intervenes either with a statement containing some soothing words or, if things deteriorate much further, by cutting interest rates at an emergency meeting.
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