Bank of England cuts interest rates to all-time low of 0.1% due to coronavirus.
The Bank of England has cut interest rates to an all-time low of 0.1% in a further emergency measure to try and limit the economic impact of the coronavirus pandemic. A week ago, the Bank of England cut in rates to 0.25% to help businesses and individuals cope with the economic damage caused by the coronavirus.
The decision to reduce the base interest rate again is an additional emergency measure designed to reduce the economic challenges presented by the coronavirus Covid-19.
It will also buy an additional £200bn of UK government and corporate bonds with an effort to lower the cost of borrowing.
The Bank said, "The spread of Covid-19 and the measures being taken to contain the virus will result in an economic shock that could be sharp and large, but should be temporary”.
Posted on Mar 19, 2020.