Andrew Bailey, the governor of the Bank of England, has said: ‘I think we have to be careful when thinking about human psychology,’ he said.
‘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.’
The interview with the governor of the Bank of England comes as there is a global debate amongst politicians who would quarrel about how they should either lift or sustain the current lockdown. ‘Hawks’ are the people going for the relenting these strict measures, in defense of the foreseeable economy.
The standstill of a wholesome industry, with the consumers lacking behind the usual normal rates may lead to a complete decimation of the foundations for a developed economy, they argue. On the other side are the ‘doves’ who argue that a premature relenting policy will not only lead to a second wave happening, but also destroy the forthcoming closed economy in a long sight.
Mr Bailey insists on the latter notion, in contrast to his predecessor Mervyn King: ‘I would apply slight caution to the Mervyn King line, which I have read and seen when he has been on television.
’ He added that “before the lockdown is lifted, employers need to ensure that their staff are not being put at risk in offices or when travelling to work.” ‘As an employer – and we have this at the Bank of England – you have to be able to answer the questions for your staff: is it safe to come to work? And what constitutes being safe, not just for people when they are in the building but travelling to and from the building?’
He himself is currently attending to his workplace, but has reserved sentiments about the experience. ‘It is weird going in the building with almost nobody in it,’ he said. ‘Most of our operations are running from people’s homes, including some very big and novel ones.’
He still would wish for the economy to remain strong, but lets in on the fact that the economy is under a great strain at the moment.‘Yes, there is a breaking point in any system, we can’t deny that,’ Mr Bailey added.
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