BoE MPC member Gertjan Vlieghe said in a speech that “based on the early indicators, and based on the experience in other countries that were hit (by the coronavirus pandemic) somewhat earlier than the UK, it seems that we are experiencing an economic contraction that is faster and deeper than anything we have seen in the past century, or possibly several centuries.”
“The economy’s potential is severely disrupted at the moment,” he added, “but once the pandemic is over, and other things equal, in principle it should return approximately to the pre-virus trajectory.” “The current priority for monetary policy, with a lot of help from fiscal policy, is to return the economy to that pre-virus trajectory as soon as possible.”
“The MPC stands ready to take further action to support the economy consistent with its remit,” Vlieghe noted.
