Bank of England warns that too rapid easing could be even more damaging to the economy


The economy would be hit by an untimely end to the foreclosure which “would also seriously damage people,” warned Bank of England Governor Andrew Bailey.

The companies argued that the measures should be relaxed to allow for an economic recovery, but health officials warned of any slack before increasing the test resources for Covid-19.

Bailey told the Daily Mail that the British should be careful about relaxing the restrictions.

He told the newspaper, “If we had a lift then (the lock) came back, I think it would seriously damage people’s confidence.

“If we have a false start … it would have potentially quite difficult effects, I think,” he added.

Bank of England Governor Andrew Bailey

The lockdown could not be lifted until employers were able to guarantee the safety of workers while on the road and at work, said Bailey.

Her interview came just days after calling for faster business loans.

Last week, the Bureau of Budget Responsibility said unemployment could reach 3.4 million, leaving about one in 10 workers unemployed, while the UK economy could fall from a cliff.

The tax watchdog warned that Covid-19 could cause the UK economy to contract by 35% between April and June, Bailey told reporters the figure was not “implausible.”

Read more

Explanation of government action against coronaviruses

The BoE loaned £ 7.6 billion to large companies last Wednesday, as more and more corporate giants asked for help to stay afloat during the coronavirus crisis.

In addition, more than £ 1.1 billion in loans have been made to UK small businesses through the Coronavirus Business Interruption Loan Scheme (CBILS) program.

Bailey said the bank wants to avoid “scaring” the economy of Covid-19, adding that support for struggling firms would accelerate recovery and avoid long-term damage.

“(This) has to be addressed otherwise we will destroy people’s livelihoods and get the scars I just talked about,” he said.


Please enter your comment!
Please enter your name here