Central bankers still have enough firepower to support the economy through the coronavirus crisis, the governor of the Bank of England has said.
Andrew Bailey dismissed suggestions that the Bank had run out of ammunition after it cut interest rates to record-low levels and stepped up its bond purchases programme. Instead, central bankers had been far too cautious about their own ability in the run-up to the crisis, he said.
“We are not out of firepower by any means, and to be honest it looks from today’s vantage point that we were too cautious about our remaining firepower pre-Covid,” Mr Bailey said at the Jackson Hole symposium, an annual gathering of central bank luminaries. “But hindsight is a wonderful thing.”
In the early days of
