BOE’s Bailey Applauds Sunak’s New Jobs Aid as Prompt, Decisive

(Bloomberg) — Bank of England Governor Andrew Bailey said he welcomes the “prompt, decisive” action of the government’s new support measures.

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Andrew Bailey, governor-designate of the Bank of England, reacts during a news conference at the central bank in the City of London, U.K., on Wednesday, March 11, 2020. The Bank of England cut interest rates in an emergency move and announced measures to help keep credit flowing through the economy, saying the coronavirus outbreak will damage economic activity.

Interest rates are likely to remain low for some time, Bailey told a British Chambers of Commerce webinar Thursday. He emphasized that policy makers need to use the tools available to them to their fullest extent, although he added that the central bank has not yet taken a view on when or if to implement negative interest rates.

© Bloomberg
Andrew Bailey, governor-designate of the Bank of England, reacts during a news conference at the central bank in the City of London, U.K., on Wednesday, March 11, 2020. The Bank of England cut interest rates in an emergency move and announced measures to help keep credit flowing through the economy, saying the coronavirus outbreak will damage economic activity.

His comments come hours after Chancellor of the Exchequer Rishi Sunak set out his plan to protect jobs and businesses with measures including a new wage support program, extended loans for companies and fresh support for the self-employed.

“It’s critically important that we use the tools of policy to deal with challenges and issues we face,” Bailey said. Sunak “was addressing exactly the right questions.”

Read more: Sunak announces crisis plan to save U.K. jobs from crisis

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