BoE can do more to minimise economic impact of COVID-19

Jake Carter

March 18, 2020

Bank of England governor Andrew Bailey has said that the bank can do more in order to minimise the economic impact of Coronavirus, as reported by Bloomberg.

The central bank is seeking to avoid creating persistent effects that would damage the capacity of the economy, Bailey outlined.

He added that so far investors have been unimpressed with the response from the UK in combating coronavirus.

Furthermore, Bailey indicated that the Bank of England would cut interest rates below zero if it needed to.

Bailey outlined the possibility of free cash handouts to citizens as fiscal policy and that the government would lead on it, according to Bloomberg.

Bailey said: “[The measure are] not a monetary policy operation in the sense of a true QE operation, but it does really increase the amount of reserves in the system. So that is policy space in that sense.

“We will meet the needs of the economy and the needs of the people of this country. Everything is on the table that is reasonable, within the policy tool set.”

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