In an ITV interview, BOE Governor Andrew Bailey suggested that the UK central bank could help the country overcome the additional debt accumulated during the coronavirus crisis (COVID-19). The central banker also suggested that BOE policies could avoid the need for austerity.
The Bank of England can help Britain cope with additional debt from the coronavirus, said Governor Andrew Bailey, suggesting that his policies could avoid the need for austerity.
Asked if austerity would be required in the aftermath of the recession, Bailey told ITV that the UK could choose which direction to take, adding, “and I think these choices will be looked into very seriously”.
The news failed to produce an immediate market reaction due to the inactivity of Thursday’s Asian session. As a result, the GBP / USD takes turns at 1.2235 / 30 at the time of the press. The central banker earlier suggested expanding government bonds, but somehow abstained in his last comments, which in turn confuses the cable traders and may exert additional downward pressure on the price.