"It's a response that was needed, but we are tourism-centric, so it has a direct impact on GDP, which the market has taken on the chin," Smith said.
If our regulators considered the needs and objectives of innovators in their work, and provided regular feedback to those creating, updating and improving our legislation, we would go a long way to achieving the Government’s objective of making the UK one of the most innovative countries in the world, and increasing the amount that we spend on research and development to 2.4% of GDP.
"We expect the OCR track will be broadly unchanged, despite a stronger domestic backdrop. The economic impacts associated with the outbreak are highly uncertain and are likely to sit largely in the ‘risks’ basket for now. But a short-term negative impact on GDP growth, commodity prices and global wholesale interest rates may feature in the central forecast. Exactly how they incorporate it won’t matter too much – any forecast will be out of date in a week."
The Reserve Bank has revised down its GDP growth outlook to 2.1 per cent next year (from 2.7 per cent) - more closely in line with market economists.