New Bank of England boss prepared to print billions of pounds to prevent coronavirus crashing the economy
THE new Bank of England boss is considering printing BILLIONS of pounds to try to stave off an economic crash.
Andrew Bailey echoed the Government’s stance that “everything was on the table” to prevent more than a million job losses and save the economy.
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That includes printing money for businesses and workers under a process called quantitative easing.
Struggling airlines would also get huge parachute payments under government plans.
Mr Bailey, on his third day in the job since succeeding Mark Carney, declared the coronavirus outbreak a “financial emergency”.
He said: “We are living in unparalleled times in terms of what’s happened in the last week — the closing of borders, the reduction of internal movement, measures preventing people going about their daily lives, with good reason.
"All that, of course, has an effect on the economy and we’ve seen this. It’s manifest all around us.
“Everything is on the table that is reasonable, within the policy tool set.
“We will do what it takes to meet the needs of the economy and the people of this country.”
'PROTECT OUR FUTURE'
Ministers are preparing a multibillion-pound bailout of airlines and industries by using emergency powers to lift a cap on financial support.
Ryanair said yesterday it was grounding “most, if not all” of its flights from next Tuesday.
EasyJet begged pilots and crew to take three months unpaid leave as up to 3,000 face losing their jobs.
New boss Peter Bellew wrote to them about “taking steps to protect our future”.
Officials representing cabin crew rejected the offer.
Cockpit crew will decide within 24 hours.
Pubs and hospitality businesses have warned of looming redundancies, with closures set to happen as early as this weekend.
Trade body UKHospitality says an employment support plan is needed within a day to protect 1million-plus jobs at risk.
Mr Bailey urged companies not to fire employees as a knee-jerk reaction, as they get financial support.
He said: “Stop, look at what’s available, talk to us or the Government before you take that position.”
Selfridges said yesterday it was closing four stores temporarily.
House of Fraser may have to shut shops or change opening hours.
JCB is halting production at all nine UK plants owing to an “unprecedented” reduction in global demand.
Nissan yesterday stopped production at its Sunderland factory.
MOST READ IN MONEY
In the City yesterday The Pound fell below $1.15 against the dollar for the first time since the 1980s.
The FTSE 100 closed down four per cent, losing £40billion in a day.
Brent crude oil dropped as much as 13.75 per cent at one point to trade at $24.76, its lowest since 2003.
You might be at work for longer
by Tracey Boles
WHAT does the markets mayhem mean for me?
Many pensions and Isas are invested in the stock market so if it falls heavily, they fall heavily too.
HOW much has it fallen?
The FTSE 100 index of leading shares is down by around a third. The scale of the fall means it is now a bear market.
The previous four bear markets lasted 497 days on average. We are only 60 days into this one.
WHAT should I do?
Experts tend to recommend sitting tight. Unfortunately, it can take a very long time to recover.
You may need to work longer to afford the retirement that you hoped for.
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