Bank of England's Bailey says vaccine news lifts uncertainty

FILE PHOTO: Bank of England Governor Andrew Bailey poses for a photograph on the first day of his new role at the Central Bank in London, Britain March 16, 2020. Tolga Akmen/Pool via REUTERS

LONDON (Reuters) - Bank of England Governor Andrew Bailey said on Thursday that news of a possible effective vaccine for COVID-19 was encouraging and would help lift uncertainty holding back the economy, but there was still a way to go in trials.

“It’s obviously encouraging us. I mean it’s encouraging for individuals, it’s encouraging for businesses and it’s encouraging for the economy,” Bailey said during a Financial Times event.

“I think we have to be cautious because obviously there’s still quite a way to go in terms of the trialling.”

He also said data published earlier on Thursday showing Britain’s economic recovery slowed in September, before new coronavirus restrictions were ordered, underscored the “huge gap” that remains compared with the economy’s size before the pandemic.

Reporting by Andy Bruce; Writing by William Schomberg; Editing by Kate Holton