The comments come amid growing concern about the impact on the UK economy from the lockdown measures to control the virus.
And while the OBR's scenario assumed the economy would bounce back completely from the initial economic crash, Mr Bailey said the Bank may not be quite as optimistic."It's what the economists call hysteresis - if the level of unemployment and business failure will be such that there will be scarring effects. The MPC will set out its view very clearly on that in [its forthcoming forecasts].
So far just over a billion pounds has been lent through the scheme, compared with seven times that in Germany and many hundreds of times that in the United States.Mr Bailey said the scheme had taken longer to get into full operation than expected. "Banks, notwithstanding the stress they are working under now, have to put their backs into it and get on with it," he said.
"I agree it does have to be tackled because otherwise we are going to destroy people's livelihoods or get scarring of the economy."