Recovery is underway, but Bank of England warns risks remain

The economy is bouncing back from Covid-19 as businesses reopen and shoppers get spending but big risks remain over the recovery, the Bank of England said on Thursday.

Andrew Bailey, the Governor, and his colleagues voted to hold interest rates at 0.1pc, the record low reached in March, and held fire on a further expansion of its £745bn money-printing programme.

The Governor added that a move towards controversial negative interest rates was “in the tool box”, but that there were no plans to use them for now. 

Following moves such as the £30bn stimulus package unveiled by Chancellor Rishi

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Metro Bank needs some big ideas to move on up

Unfortunately Metro’s half-year results were a blizzard of bad news, with seemingly all of the numbers going in the wrong direction. There was the £112m provision for bad loans, pushing it to what one analyst called an “eye-watering” £241m pre-tax loss. Its net interest margin, a key measure of profitability, sank to 1.15pc, and its capital buffer ratio shrank too. Customer deposits have risen by 8pc since December, but that is happening across the board, with people choosing to stash money away rather than spend.

Metro isn’t giving any guidance about when it will make a profit. Analysts at Goodbody

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Financial lifeboat scheme extends deposit protection amid bank failure fears

Savers are to be offered greater protection against bank failures, amid concerns that the coronavirus pandemic has increased the likelihood of financial firms collapsing.

The Financial Services Compensation Scheme is the industry lifeboat fund which compensates customers who have lost money to failed financial institutions. Deposits with British banks, building societies and credit unions are normally protected up to £85,000 per person.

However, there is additional protection for customers who have temporarily high balances of up to £1m. This may be because the proceeds of a house sale have been deposited in their account or they have received a large

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Difficult second decade ahead for Metro Bank

One fast-track ticket to growth could be through takeovers. Sources said the board will this week decide on whether to snap up peer-to-peer lender Ratesetter, which matches those who want to borrow with those who want to lend and, like Metro, was founded in 2010.

The board has been weighing up whether to go ahead with the deal given the current climate, fearing any further negative publicity if it acquires the business and things go sour.

Insiders said that if a takeover does go ahead it will be in part because Metro has hashed out a deal that keeps it

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