BoE's Bailey: Measures such as helicopter money are for government to decide
|Bank of England Governor Bailey on Wednesday said measures such as 'helicopter money' were fiscal and would be for the government to decide. Regarding the GBP's sharp drop, "we watch sterling very carefully, we will take note of recent fall and consider effects closely at the next MPC meeting," Bailey noted.
Bailey further acknowledged that there was a huge amount of uncertainty about the economic outlook and said that working on a 'best estimate' was a challenge.
GBP/USD reaction
The GBP/USD pair seems to have steadied near the 1.1850 handle on these remarks but was still down 1.7% on the day.
Key takeaways
"Effect of coronavirus on big companies has become much starker since last week's rate cut."
"So far, the financial system is standing up well to coronavirus."
"Keeping markets open is important, UK markets are not out of control."
"Global central bank liquidity steps on Sunday have helped calm some markets."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.