Andrew Bailey’s stark warning about the coronavirus ’emergency’

The new Bank of England governor Andrew Bailey has warned that the UK is facing an ‘economy emergency’ and the worst is yet to come. Speaking to Sky News, Bailey said the UK economy needs to brace itself for a ‘very big downturn’. ‘Everything’s on the table that is reasonable,’ he said, referring to the policy tool kit at the BoE’s disposal to help manage any economic crisis in the coming weeks and months.

The governor’s warning comes a day after Chancellor Rishi Sunak’s unprecedented £350bn coronavirus stimulus and hours after the pound plummeted below $1.20 – its lowest level against the US dollar since 1985. Investors are abandoning the pound and flocking to the dollar as they prepare for waves of economic hits across the world. 

While the Chancellor’s colossal giveaway included billions more in promises and pledges than businesses were expecting, he has to compete with the £850bn ($1 trillion) stimulus package launched in the United States, which (temporarily, at least) gave the stock market reason to rally.