Bank of England urgently cuts interest rate to 0.25% due to coronavirus.
On Wednesday 11 March 2020 The Bank of England has slashed the main interest rate by 0.5 points from 0.75% to 0.25%, which is for the first time since August 2016. This decision is explained by the need to support the country's economy, which suffers from restrictive measures during the outbreak of coronavirus infection COVID-19.
‘Following the spread of Covid-19, risky asset and commodity prices have fallen sharply, and government bond yields reached all-time lows, consistent with a marked deterioration in risk appetite and in the outlooks for global and UK growth. Indicators of financial market uncertainty have reached extreme levels’, the Bank of England said in the statement.
At the same time, the regulator suggested that it could continue easing monetary policy, if circumstances require further measures.
The reduction in the bank rate will help businesses and support family finances at difficult times. Also, it will allow to reduce the cost of loans, increase finance availability and save jobs.
In our opinion, this measure makes it possible to profitably invest in real estate using borrowed funds.
Our specialists will help you to make a profitable investment in real estate or buying a home, including using a mortgage.
Posted on Mar 11, 2020.