Bank will do more if financial stresses worsen

If the Bank of England is going to build on the unprecedented policy support it has unleashed in recent weeks to counteract the economic effects of the coronavirus, it won’t be because of concerns over how far inflation or GDP will fall. Instead, it would be a result of the stress in the financial markets worsening and threatening to turn the current health and economic crisis into a financial one. In that situation, the Bank may have to roll out some more imaginative tools.