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  4. Bank of England cuts interest rates again in response to coronavirus and sends the pound soaring from 34-year low

Bank of England cuts interest rates again in response to coronavirus and sends the pound soaring from 34-year low

Callum Burroughs,Callum Burroughs   

Bank of England cuts interest rates again in response to coronavirus and sends the pound soaring from 34-year low
Stock Market1 min read
the bank of england
  • The Bank of England has announced that it is cutting interest rates by a further 15bp taking the effective rate to 0.1%.
  • The bank's monetary policy committee also voted to buy £200 billion ($230 billion) worth of UK government bonds and investment-grade corporate bonds. The decision sent the pound soaring more than 0.5% from 34 year lows.
  • "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," the Bank of England said in a statement.

The Bank of England has announced that it is cutting interest rates by a further 15bp taking the effective rate to 0.1%.

The bank's monetary policy committee also voted to buy £200 billion ($230 billion) worth of UK government bonds and investment-grade corporate bonds. The decision sent the pound soaring more than 0.5% from 34 year lows.

"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," the Bank of England said in a statement.


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