BOE’s Bailey Says Independence Was ‘Crucial’ to Virus Stimulus

Bank of England Governor Andrew Bailey said the independence of central banks hasn’t been eroded by their coordination with governments to help economies through the coronavirus crisis this year.

Emergency monetary policy stimulus has pushed down sovereign yields and helped governments to fund huge spending on aid for businesses and workers. That’s led to accusations of monetary financing, or the direct financing of governments by central banks, something that Bailey has previously denied is taking place.