The UK banks must address the serious strain on their operational capacity for handling the surge in the loan demand, Bank of England Governor Bailey told reporters on Friday and noted that large and small companies will need new equity.
Additional takeaways
"The IMF sees a V-shaped recovery for the global economy but there is a huge amount of uncertainty."
"Global policymakers in IMF meetings showed a very clear commitment to do what is necessary."
"OBR's scenario of 35% fall in UK GDP in Q2 is not implausible."
"The MPC will set out its view very clearly in may on how much scarring the UK economy faces."
"The UK government has not yet used its extended ways and means overdraft facility with the BoE, gilts market is pretty orderly."
"Can't say at this point how long the BoE will hold on to gilts it has bought."
"Must avoid public sector policy decisions crowding out private sector investment when crisis eases."
"The UK's fiscal response to COVID-19 crisis may help banks in the next stress tests."
Market reaction
The GBP/USD pair continues to cling to modest daily gains near the 1.2500 handle after these comments.
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