BoE's Bailey: BoE needs to act in a coordinated way with Treasury

The coronavirus outbreak will the first and the most pressing issue that they will have to face, incoming Bank of England Governor Andrew Bailey said while speaking before the UK Parliament's Treasury Committee on Wednesday.

"We have to be very nimble on coronavirus. It's important that Mark Carney laid out full tools that the BoE has to tackle coronavirus," Bailey added. "All focus is on monetary policy, but it would be reasonable to expect that we will have to provide supply-chain finance in the near future."

GBP/USD reaction

The GBP/USD pair edged lower slightly and was last seen trading at 1.2815, adding 0.05% on a daily basis.

Additional takeaways

"Coronavirus has moved on in the days since I last met the finance minister."

"We have discussed how best to coordinate with the finance ministry, while preserving the BoE's independence."

"BoE needs to act in a coordinated way with Treasury, I'm optimistic on this."