Bank of England governor Andrew Bailey today said he’s now more positive on Britain’s post-pandemic recovery – but with a dose of caution.
“I’m now more positive but with a large dose of caution,” Bailey told the BBC.
The British economy might perform more strongly than the BoE predicted last month as households spend the savings they have accumulated during the lockdown, but there was also a risk from possible new coronavirus variants, he said.
Bailey said the British economy was get back to its late 2019 level around the end of this year. Last month, the BoE said the economy would reach that landmark by the first quarter of next year
Despite his optimism, Andrew Bailey insisted that the Bank is “not out of tools, we are not out of firepower” if further stimulus is needed.
Those toolbox includes one fresh, as-yet-unused implement – the possibility of cutting interest rates below zero (they’re currently just 0.1%).