Coronavirus shock to UK economy could 'prove large', says Bank of England chief Mark Carney

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Bank of England governor Mark Carney has warned that the economic shock caused by coronavirus could "prove large", but stressed it will ultimately be temporary.

The Bank's outgoing boss told MPs on the Treasury Select Committee that policymakers stand ready to "act as appropriate" to support the British economy and financial system amid Covid-19.

He said: "The Bank of England's role is to help UK businesses and households manage through an economic shock that could prove large but will ultimately be temporary.

"The Bank will take all necessary steps to support the UK economy and financial system, consistent with its statutory responsibilities."

He added that he has been holding a series of discussions with the Chancellor over the issue and said the Bank is ensuring "all necessary contingency plans are in place".

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His comments came as world stock markets rebounded again on Tuesday, with the FTSE 100 Index up more than 2 per cent on expectations that central banks globally will cut rates to counter the impact of coronavirus.

Indices across the globe plunged during the final week of February, with trillions of pounds wiped off the global economy.

It comes as more than 90,000 people worldwide are suffering with Covid-19, and at lease 3,000 have died.

More follows…