According to the Telegraph, BoE governor, Andrew Bailey warned the risks to the recovery were “very much on the downside” but hinted the Bank had enough monetary funds to tackle a second wave of the virus if needed.
Bailey’s comments come from a speech he made today( 8 October) on banking stability. He also urged banks to use their “capital buffers” to inject more money into the economy, this is despite a “natural unease” following the financial crisis.
Reports also said Bailey suggested banks and the economy would “benefit” from lenders using their “rainy day” buffer during the crisis, referring to the cash buffer the financial policy committee made BoE hold when the pandemic struck, allowing them to keep supplying credit to the economy.
In transcript obtained by the Telegraph Bailey stated: “The risks are very much on the downside and that, of course, reflects for all us, unfortunately, the pattern of returning evidence of Covid.
“I think unsurprisingly the natural caution of people to engage in activity in view of that”.