BoE Governor Andrew Bailey pledged that “however the economic outlook evolves, the Bank will act as necessary to deliver the monetary and financial stability that are essential for long-term prosperity and meet the needs of the people of this country.” That is the central bank’s “total and unwavering commitment” to safeguard the UK economy during the current coronavirus crisis.
He also noted that the central bank is “not out of monetary policy tools”. It’s appropriate to continues with “aggressive pace” of QE for the moment. Further, there will be another MPC meeting “before getting anywhere near completion of the QE program”. But, “it’s about what is the appropriate response and what information, news, we think we’re going to get in the quite near future.”
Bailey’s comment affirmed markets’ views that BoE is on a wait-and-see approach for the moment. He left the door open for more easing if situations don’t improve over Q2.