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Bank of England Deputy Governor Ben Broadbent said the economic impact of coronavirus will ultimately be temporary.
From the experience of other countries, the spread of the virus, and the measures to contain that spread, can also have a very significant impact on economic activity, he said in a speech at the London Business School.
"Judging by past episodes it's likely that the impact will ultimately be temporary," he said. "As such, the outbreak should not directly affect the longer-term viability and productive potential of most businesses or of the economy as a whole."
Further, he said there may be a role for economic policy to support activity and the provision of credit in the meantime, in order to ensure that short-term disruption doesn't result in longer-term damage.
At the Treasury Committee hearing, BoE's incoming governor Andrew Bailey, early this week, said the central bank will work with the government to provide bridge finance to companies in the near future.
