Outgoing Bank of England boss Mark Carney warned that the economic shock from Coronavirus “could prove large” in his final speech as governor.

Speaking at University College London yesterday, Carney said that the Bank was working with the Treasury on how to deal with the financial fallout from the virus.

But he remained tight-lipped about whether the Monetary Policy Committee would follow the US Federal Reserve’s lead and cut interest rates on March 16.

He said: “The Bank of England’s role is to help UK businesses and households manage through an economic shock that could prove large but will ultimately be temporary.

“The Bank will take all necessary steps to support the UK economy and financial system, consistent with our statutory responsibilities. 

“Our policy arsenal includes monetary policy instruments, special liquidity facilities, and macroprudential tools.

“We are also coordinating with HM Treasury to ensure that any initiatives are complementary and that they will collectively have maximum impact, consistent with our independent responsibilities.”

On interest rates he said: “The MPC is assessing the economic impacts and considering the policy implications of various possible scenarios, including the extent to which supply disruptions have aggregate demand consequences via cash flow, cost and availability of finance, as well as confidence effects.”