BOE’s Bailey: BOE can help UK avoid return to austerity – The Telegraph

Anil Panchal FXStreet

While speaking on the ITV interview, the BOE Governor Andrew Bailey suggested that the UK’s central bank can help the nation overcome the extra debt piled during the coronavirus (COVID-19) crisis. The central banker also suggested the BOE’s policies could avoid the need for austerity.

Key quotes

The Bank of England can help Britain cope with the extra debt load incurred from coronavirus, Governor Andrew Bailey has said, suggesting its policies could avoid the need for austerity.

When asked if austerity would be required in the wake of the recession, Mr. Bailey told ITV that the UK could choose which direction to take, adding: ‘and I think those choices will be looked at very seriously’.

FX implications

The news failed to deliver any immediate market reaction due to the early Asian session inactivity on Thursday. As a result, the GBP/USD takes rounds to 1.2235/30 by the press time. The central banker earlier suggested the expansion of government bond but kind of refrained in his latest comments, which in turn confuses the Cable traders and may exert additional downside pressure on the quote.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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