New BOE Chief Baily speaking to reporters with comments
BOE Bailey is speaking to reporters:
- actions aren't monetary financing
- time to act was now, can't wait for data
- BOE will act in markets promptly and rapidly
- not intending to close markets
- I'm not saying there's nothing left in the tank
- rumors of London lockdown affected market pricing
- market conditions were bordering on disorderly
- not in favor of negative rates, but nothing ruled out
- government response to crisis has been very very sensible
- there will be frontloaded action on QE
- global central bankers in very close contact, not surprising coming 2 common conclusions
- initial market reaction to announcement was as BOE expected
- negative interest rate not compatible with attempts to boost capacity of banks to lend
- Bond purchases will begin on March 20
- Will by GBP5.1B of gilts on March 20
- BOE Will very pace of purchases
- Will buy bonds and materially higher pace than recent past
The BOE announced interest rate cut and additional QE after an emergency meeting earlier today.
