Quotes from the news wire:
The Bank of England's role is to help UK businesses and households manage through an economic shock that could prove large and sharp but should be temporary, the Bank's why The Bank is announcing today a comprehensive and timely package of measures to help UK households and businesses bridge across the economic disruption caused by COVID-19. These measures will help keep firms in business and people in jobs and they will prevent a temporary disruption from causing longer-lasting economic harm.
This is a big package. It's a big package. It is a big deal to cut the CCYB by as much as the FPC did. It's a huge term funding certainty for the financial sector, 100 billion at bank rate, with additional incentives and potentially could be substantially increased depending on the lending path of the economy, and on top of it there are fiscal measures that are coming. We have direct line of sight of the relevant bits of the budget. That's part of the coordination.
It will pass, the medical situation will pass. With time there will be a vaccine, the spread of the virus will be arrested. We don't know exactly what that period of time is, nor do the expert epidemiologists, they talk in terms of scenarios and probabilities, quite rightly so, we have the resilience in the system that has been built up over a decade that can withstand all of those scenarios.
The Bank is coordinating The Bank actions with those that the Chancellor will announce later today in the budget in order to ensure that our initiatives are complementary and that they will collectively have maximum impact consistent with our independent responsibilities, we have anecdotal evidence that we're building up through our agency network and our direct contacts with businesses, where we have seen a sharp fall in trading conditions, particularly in retail, consumer discretionary items over the course of the last week.
In terms of forward looking, I will just note the statement that The Bank will take all necessary further actions, there is a regular schedule of meetings and the MPC will be meeting again late this month, there's no change to that, this is a special - this has been a special meeting and a special action but it doesn't change the schedule in any sense... this will be under constant review and consideration.
To be clear, more expensive liquidity is a price well worth paying for making the core of the system more robust, removing public subsidies is absolutely necessary for real markets to exist. Volatility characterizes such real markets and much of the pre-crisis market-making capacity among dealers was ephemeral.