BoE Governor Andrew Bailey said the policymakers are seeing “activity return” and “we are beginning to see this recovery”. In particular, housing markets and new car sales are returning “quite strongly” but not in hospitality and entertainment. The return to normal is still a “very big question”. Also, he doesn’t yet know the “full story” of the long term economic damage of the coronavirus pandemic.
“Financial markets indicate interest rates will stay very low,” he added. “People can see that we are committed to keeping markets stable via quantitative easing… There is a legitimate question about what we do with QE when things get back to normal.”
