Both COVID and the process of setting the future relationship with the EU have increased uncertainty, Bank of England (BoE) Governor Andrew Bailey notes in a speech prepared for delivery at TheCityUK National Conference.
Additional takeaways as summarised by Reuters
"In my view, quantitative easing at a time like this can prevent an unwarranted tightening in financial conditions."
"We have had encouraging news on the vaccine front."
"Vaccine news will play a major role in lowering the level of uncertainty."
"More financing will be needed to ensure viable businesses survive and to finance the need for investment."
"We need to ensure that this is done without excessive leverage."
"If COVID changes to economy persist, they could require a reallocation of labour and capital, and this reallocation could be more or less costly."
"My best guess is that there will be lasting changes."
"We can now see some light at the end of the tunnel."
"We need to focus more on important questions about how our economies will look in the future."
The GBP/USD pair edged higher after these comments and was last seen gaining 0.45% on the day at 1.3252.
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.