The economy would be hit by a premature end to the lockdown which would also “damage people’s confidence very severely”, Bank of England governor Andrew Bailey has warned.

Businesses have argued measures should be eased to allow economic recovery, but health authorities have cautioned against any relaxing before testing resources are increased.

Mr Bailey said Britons should be cautious about easing restrictions.

He told the Daily Mail: “If we had a lifting and then (lockdown) came back again, I think that would damage people’s confidence very severely.

“If we have a false start… that would have potentially quite difficult effects I think,” he added.

The lockdown could only be lifted after employers were able to ensure staff were safe during their commute and at work, Mr Bailey said.

His interview came just days after he called for faster lending to businesses.

Last week, the Office for Budget Responsibility said unemployment could hit 3.4 million, leaving around one in 10 of the working population without a job.

The fiscal watchdog warned Covid-19 could lead to Britain’s economy shrinking by up to 35 per cent between April and June, with Mr Bailey telling reporters the figure was not “implausible”.…Read More…

Read Also: Union Leaders Demand Judge-Led Inquiry Probes ‘Grotesque’ PPE Shortages…

hk.hk