Bank of England's Haldane says vaccine news could break gloom-loop

FILE PHOTO: The Chief Economist of the Bank of England, Andy Haldane, listens from the audience at an event at the Bank of England in the City of London, London, Britain April 27, 2018. REUTERS/Toby Melville

LONDON (Reuters) - Bank of England Chief Economist Andy Haldane said that news of a possible vaccine for COVID-19 could be transformational for the economy which has been stuck in a “gloom-loop”.

“This could be transformational,” Haldane told Channel 4 News. “We’ve been ... for so many months in this gloom-loop, right? The media coverage dominated by news of viruses and deaths and destruction of jobs and incomes. All of a sudden, at a stroke ... some light appeared at the end of the tunnel.”

Haldane’s comments echoed those he made on Monday about the potential for the vaccine to give a confidence boost to the economy.

Writing by William Schomberg; Editing by Alistair Smout