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Bank of England Governor Andrew Bailey tells BBC that businesses thinking of firing staff because of coronavirus crisis should “stop” talk to the Bank of England and Treasury about what’s available’ to fund keeping workers in jobs.
Bank of England Governor Andrew Bailey tells BBC that businesses thinking of firing staff because of coronavirus crisis should “stop” talk to the Bank of England and Treasury about what’s available’ to fund keeping workers in jobs.
Governor Bailey: “my big message for businesses and for the people of this country is that we will be there to support your needs.”... /2
Asked if the loan subsidies were available even to those companies that had already fired people: Bailey - “I would emphasise the point that it's critical that we support the needs of the people in the country”. /3
Asked again if authorities were providing a “bridge” beyond crisis for people who need to buy food as well for businesses, Governor said there will be “important discussions” message to them was “supporting the employment and income of the people in this country .. is critical”.
*** The Governor said that the Bank “doesn’t have the powers to stop” businesses paying bonuses and dividends after receipt of subsidised loans. But he said “I’m sure they’ll get the message here”.
The Governor said he was not going to foreshadow MPC meeting, and Bank was an independent institution, but the country has a right to expect that it would work “in a very closely coordinated way with the Government . This is a crisis we’re all in. It’s an emergency situation”. /5
NEW: Governor: “strong preference” financial markets stay open..but warned City traders seeking to “exploit” situation: “Anybody who says, ‘I can make a load of money by shorting’ which might not be frankly interest of economy, interest of the people, just stop what you're doing”
