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“We have to be very active about our monetary policy tools,” Bank of England (BoE) Governor Andrew Bailey said on Tuesday and added that they need to consider negative interest rates, as reported by Reuters.

Additional takeaways

“Level of economic scarring now is hard to estimate.”

“As COVID returns, the scarring could increase.”

“Some activities may turn out to be ones without a demand.”

“Long-term scarring, detachment of people from work is one of the most damaging things we can have in the economy.”

Market reaction

The GBP/USD pair remains under constant bearish pressure following these comments and was last seen losing 0.72% on the day at 1.2970.