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Coronavirus response might provide extra countercyclical stimulus, the Bank of England (BoE) will need to take account of this, BoE Deputy Governor Dave Ramsden said on Tuesday and added that the policy might become more of a tailwind for the economy.

“We need to weigh supply and demand effects from coronavirus and see if spare capacity opens up that will put downward pressure on inflation,” Ramsden explained.

GBP/USD reaction

The GBP/USD pair, which touched a daily high of 1.2815 earlier in the session, was last seen trading at 1.2792, adding 0.33% on the day.