Bank of England waiting for “powerful and timely” global response to the virus

Bank of England head Mark Carney said officials around the world are working on “powerful and timely” measures to limit the economic damage from the rapidly spreading coronavirus, which has raised concerns about a new global recession.

“The lines of communication between central banks around the world are wide open,” Carney told lawmakers on Tuesday.

“It is reasonable to expect a response that reflects a combination of fiscal measures and central bank initiatives.”

“We are confident that together these measures … will be powerful and timely,” he said.

The spread of coronavirus from China around the world has forced the leaders of world financial institutions to think about how to compensate for the blow to the economy.

“The 2007-2008 crisis caused some lasting effects on the economy. The prospect of the current situation is that we will have interruptions, but not destruction,” he said.

Carney declined to comment when asked if the Bank of England Monetary Policy Committee could lower interest rates before the March 26 meeting.

“The committee will make a decision at the appropriate time, but not earlier,” he said.