Businesses will need a bailout from government to get over economic ‘shock’ of coronavirus, says new Bank of England chief Andrew Bailey
- The next Bank of England governor Andrew Bailey has given evidence to MPs
- Mr Bailey warned of the impact from spread of coronavirus around the world
- He said there will need to be bailout for companies to help them bear the impact
Businesses will need a bailout from government to get over the ‘shock’ of coronavirus, the new chief of the Bank of England said today.
Andrew Bailey warned there would be ‘damage’ to the economy from the virus, saying small firms in particular would need help.
With a week to go until Chancellor Rishi Sunak delivers the Bidget, Mr Bailey said will have to be ‘supply chain finance’ in the ‘not very distant future’
The comments came as the economist – due to take over from current governor Mark Carney later this month – gave evidence to MPs on the Treasury Select Committee.
Andrew Bailey warned there would be ‘damage’ to the economy from the virus, saying small firms in particular would need help
There is mounting speculation that the Bank will step in to boost the economy as coronavirus sweeps the globe.
The US Federal Reserve announced a surprise rate cut yesterday, and other central banks are expected to follow suit.
Asked about the effects of coronavirus, Mr Bailey – the outgoing head of the Financial Conduct Authority – said:’ “I think it is quite reasonable to expect we are going to have to provide … some form of supply chain finance in the not very distant future now to ensure that the effects of this shock from the virus are not damaging to many forms of activity.”
He said smaller companies in particular would need support, and quickly.
The UK has been stepping up preparations amid mounting fears of a major outbreak – with the number of cases rising sharply to 85 today.
Boris Johnson published the government’s ‘battle plan’ to combat the spread of coronavirus yesterday.
It suggests that the public will be asked to minimise social contact for around three months in case of mass infections.
Boris Johnson (pictured at PMQs today) published the government’s ‘battle plan’ to combat the spread of coronavirus yesterday