Bank of England puts Covid behind it, but now must face costs of war

Workers are returning to offices as restrictions ease, but low consumer confidence won’t be lifted by war in Europe. Photograph: Wiktor Szymanowicz/Rex

In times of global crisis, central banks watch for signs of panic in the financial markets. On 3 March 2020, when it became clear to investors that Covid-19 posed a significant threat to the global economy, a sudden flight to safety threatened to turn into a full-scale stampede.

With sellers dramatically outnumbering buyers, central banks found themselves riding to the rescue.