BOE’s Bailey: Do not think covid will cause structural shift in the UK economy

“I do not think covid will cause a structural shift in the UK economy,” the Bank of England (BOE) Governor Andrew Bailey said after speaking on negative interest rates in the last hour.

Additional quotes

BOE is doing a lot of work with banks on whether negative rates are practical.

Critically important that banks sustain lending as economy recovers.

BOE is at low end of estimate of scarring from covid on economy.

Hard to know if people will go on a spending spree with built-up savings after covid, or be more chastened.

Most likely that there will be a mix of consumer behaviour in response to higher savings level.

I will not offer a view on Scottish independence, but there is a link between the UK political uncertainty and business investment.

There is some evidence that last Scottish independence referendum depressed investment.