Bank of England's Andrew Bailey: 'We are not out of firepower' – business live

Rolling live coverage of business, economics and financial markets as analysts contemplate end of ‘Abenomics’ and weaker dollarEuropean stocks waver despite signal of longer stimulus from FedAbe confirms resignation on health grounds, hails economic policy Andrew Bailey speaks after sterling hits eight-month high 2.49pm BST Andrew Bailey has now finished speaking – I think it’s fair to say that was one for the monetary policy purists.Sterling is unmoved: it’s up 0.7% against the US dollar at $1.3291.Governor Bailey at #JacksonHole suggesting pace of QE an important measure of its efficacy, based on research paper: https://t.co/XdMTNUrvnT feels like key takeway is suggestion that CB balance sheet should be used countercyclically to restore headroom for next economic downturn”Expanding the range of assets purchased is another way for central banks to create more headroom. The Covid crisis has seen a further broadening of the range of assets that central banks stand ready to purchase.” – Andrew BaileyAs BoE Governor Bailey talks of QE being ” temporary” let me remind you it started in 2009 and not one single £ has ever been unwound….. 2.42pm BST The banking system has stood up well to the Covid crisis, Bailey says, when asked about financial stability.There were some signs of stress in non-bank markets. It is not a surprise that the re-regulation of the banking system would move assets away from the banking sector, he says. Continue reading…
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