Dow Jones enters bear market as coronavirus pandemic declared

Q: How important is coordinated action?

Asked about internal coordinated action, Mark Carney says the world is in a different place now compared to 2008. Then, he says, a cut was needed just to “get to the weekend”, but says things are different now.

He has spoken about the need for targeted fiscal policy, which is unusual for the Bank of England to specify. However, given Mr Carney has already said that the Bank is working closely with the Treasury, it’s likely he feel confident that complementary policy is already on its way.

The second question is again inaudible (economics reporters, point the mic towards your mouth!). Mr Carney repeats earlier comments about the buffer space.

Q: Why should the public trust banks to behave?

Mr Carney says the public “expects the authorities to act” in a situation like this. He says the Banks have been given “certainty” over conditions for the coming years, and says the Government will do “other things that are targeted” today.

Mr Bailey, putting his Financial Conduct Authority hat on, says the system is now “much more resilient” and adds that there is “no excuse” for banks treating customers poorly.

Q: How effective is ‘term funding’?

Mr Carney says ‘term funding’ – the Bank supplying largely small business lending to ease the shock – was effective and popular when it was last employed during the financial crisis.

He says once again that there are two paths – a “do-nothing path… low road” of letting the coronavirus shock hit businesses hard, but the Bank keeping its powder dry, or a “high road” in which Threadneedle Street intervenes to to soften the blow. Mr Carney says the Bank is obviously choosing the latter.

The pound has been climbing during Mr Carney and Mr Bailey’s answers: