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.