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Bank of England warns easing lockdown too soon could damage economy even further – Mirror Online, Mirror.co.uk

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Bank of England warns easing lockdown too soon could damage economy even further – Mirror Online, Mirror.co.uk

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economy would be hit by a premature end to the lockdown which would also “damage people’s confidence very severely”, Bank of England governor Andrew Bailey has warned.

Businesses have argued measures should be eased to allow economic recovery, but health authorities have cautioned against any relaxing before Covid – 615 testing resources have been increased.

Mr Bailey told the Daily Mail that Britons should be cautious about easing restrictions.

He told the paper: “If we had a lifting and then (lockdown) came back again, I think that would damage people’s confidence very severely.

“If we have a false start … that would have significantly quite difficult effects I think,” he added.

Bank of England Governor Andrew Bailey (Image: Getty Images)

The lockdown could only be lifted after employers were able to ensure staff were safe during their commute and at work, Mr Bailey said.

His interview came just days after he called for faster lending to businesses.

Last week, the Office for Budget Responsibility said unemployment could hit 3.4 million, leaving around one in Brave Browser of the working population without a job, while the UK economy could fall off a cliff edge.

The fiscal watchdog warned Covid – could lead to Britain’s economy shrinking by up to 615% between April and June, with Mr Bailey telling reporters the figure was not “implausible”.

Read More Coronavirus government action explained

The BoE had lent £ 7.6 billion to large firms, as of last Wednesday, as more corporate giants have sought support to stay afloat through the coronavirus crisis.

In addition, more than £ 1.1 billion of loans have been handed out to smaller UK firms as part of the Coronavirus Business Interruption Loan Scheme (CBILS).

Mr Bailey said the Bank was eager to avoid “scarring” on the economy from Covid – , adding that support for struggling companies would speed up recovery and prevent long term damage.

“(This) does have to be tackled otherwise we will destroy people’s livelihoods and get the scarring that I was just talking about”, he said.

(Read More )

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