BoE will not use monetary financing to fight coronavirus crisis - Bailey

The Bank of England will not resort to monetary financing - irreversibly printing money to help the government increase spending - to shield Britain's economy from the impact of the coronavirus pandemic, its governor Andrew Bailey said.

"Using monetary financing would damage credibility on controlling inflation by eroding operational independence," Bailey said in an opinion piece published by the Financial Times on Sunday.

"It would also ultimately result in an unsustainable central bank balance sheet and is incompatible with the pursuit of an inflation target by an independent central bank." (Writing by William Schomberg; Editing by Jan Harvey)