Jump to Content Jump to Main Navigation

Part I Responses to the Covid-19 Crisis and Maintenance of Financial Stability, 4 The Response of Central Banks to the COVID-19 Crisis: Legal Aspects of the Bank of England’s Policy Measures

Sonya Branch

From: International Monetary and Banking Law post COVID-19

Edited By: William Blair, Christos Gortsos, Chiara Zilioli

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2023. All Rights Reserved.date: 27 February 2024

Subject(s):
Regulation of banks — Financial regulation — International monetary conduct — Monetary system — Bank of England — UK Financial Conduct Authority (FCA) — UK Financial Services Authority (FSA) — UK Prudential Regulation Authority (PRA)

This chapter showcases analyses the legal aspects of the Bank of England’s policy measures in line with the response of central banks to the COVID-19 pandemic crisis. The Bank acted moved quickly, utilising tools developed in the wake of the by enabling post-global financial crisis (GFC) tools to stabilize the financial system and the wider UK economy. The Bank’s Monetary Policy Committee (MPC) made two cuts to the bank rate and expanded its program of quantitative easing (QE) via gilt and corporate bond purchases. Moreover, the bank Bank used monetary and regulatory tools in a manner, independent of, but consistent with, government action, facilitating lending through the banking system and by lending directly to corporates from central bank reserves to stabilize the cost of finance. The chapter also mentions how the bank Bank continued supporting monetary and financial stability through the Brexit process.

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.