UK OBR’s Bean: BOE rate cut unlikely to help economy much in short run, credit measures more important

The UK Office for Budget Responsibility (OBR) macroeconomic adviser and the former Bank of England (BOE) Deputy Governor Charlie Bean, said on Tuesday that he does not think the BOE rate cut is likely to help the economy much in the short run, credit measures more important.

Additional quotes

Trying to provide economic forecasts for next year or two is "pie in the sky".

"very good argument" that state should act as insurer against coronavirus losses.

Commercial insurers potentially may not be able to afford coronavirus losses.

Evidence from financial crisis is that big early action is better than half-hearted action later.

OBR’s Chote said that in some ways coronavirus is more like a wartime policy challenge, with the government seeking to direct production of ventilators.

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