Bank of England working to spread Covid shock and avoid economic “chaos”

The governor of the Bank of England has told Scottish business leaders it is trying to spread the shock of the coronavirus crisis, so that the economic downturn does not lead to chaos.

Speaking in a webinar with 190 members of the Scottish Chambers of Commerce, Andrew Bailey indicated that a continued UK recession was likely this winter.

He warned the UK economy was in “a very difficult period” and the trajectory for any recovery would be revised in the central bank’s February forecast.

Bailey said that unemployment was probably closer to 6.5% than the official 4.9% UK rate from the Labour Force Survey.

Quantitative easing will continue, with a further £150bn of asset purchases to be spread through this year, in addition to the £300bn made last year.

Bailey also noted a possible move to negative interest rates, stating that they had not been tried anywhere in the

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