Bank of England's Cunliffe speaking
- Covid 19 crisis is very far from over
- Likely to be great deal of pain for financial sector
- Another sharp repricing of risk is still possible but 1st stage of crisis is over
- Money market funds source of vulnerability
- Negative rates are one possible tool the Bank of England might use to support demand
- There are mixed views of the evidence in favor of negative rates
- MPC will want to think about impact negative rates would have on UK financial system
- Negative rates have led to confusion among firms and households and areas where they have been implemented
- Latest data shows some economic recovery over April MA
- It is very early to say what this means for recovery in Q3 and Q4
- Economy will not reach precrisis level until mid 2021
