BoE Governor Andrew Bailey supported Chancellor of Exchequer Rishi Sunak’s latest spending plans. He told BBC Radio, “it is absolutely sensible that public resources, resources of the state, are being used to cushion the huge impact of this absolutely unprecedented shock.” “We are smoothing the impact over a number of years to come, and that is the right thing to do,” he added.
Sunak admitted that borrowing and debt are at “record peacetime highs”. Also, the UK government is “on a path where that continues to be at a very elevated level, so that’s not a sustainable position,” “Once we get through this and we have more certainty about the economic outlook, we’ll need to look at how we can make sure we have a strong set of public finances,” he added.
