Andrew Bailey: BoE readying further 'unprecedented' response to coronavirus crisis

Eyes further rate cuts

The Bank of England is "ready to do more" to fight the economic consequences of the coronavirus pandemic and the measures put in place to tackle it, including further interest rate cuts and an expansion of its corporate financing facility, according to its governor Andrew Bailey.

Writing in The Guardian, the former chief executive of the Financial Conduct Authority warned that "the risks are undoubtedly on the downside for a longer and harder recovery" and it may be necessary for further BoE measures as a result. Bailey noted that lockdown measures have led to a fifth of companies pausing trading, and a quarter have seen their turnover halve, while household spending is down by around a quarter. UK output contracted by almost 6% in March and Bailey said that is likely to have fallen further, amid widespread use of the government's furlough scheme and an uptick...