CBI responds to Bank of England monetary policy announcement

Alpesh Paleja, CBI Lead Economist, said:

“Further asset purchases once again illustrate the Bank’s willingness to go above and beyond to support activity. With an increasingly murky economic outlook ahead, a further loosening of monetary policy will give reassurance to the business community.

“But monetary policy can only do so much, and as restrictions on activity tighten amid rising infection rates, sectors that remain under pressure may very well need further support.

“In the meantime, there are five clear steps that are needed to help the economy weather the winter storm. We need to keep covid-secure firms as open as possible, provide assurances that the government’s financial and employment support will last the course, put in place a transparent exit plan for lifting lockdown, roll out mass testing without delay, and involve business in decision-making.”