Bank of England strikes again – interest rates cut to an all-time low!

Bank of England strikes again – interest rates cut to an all-time low!

The Bank of England took the decision of cutting rates to a historic level of 0.1% at a special meeting held on Thursday. It also announced it will buy an additional £200bn of U.K government and corporate bonds to help the country deal with the Coronavirus impact on the economy.

"Over recent days, and in common with a number of other advanced economy bond markets, conditions in the UK gilt market have deteriorated as investors have sought shorter-dated instruments that are closer substitutes for highly liquid central bank reserves”, is detailed in a Bank of England statement.

The emergency meeting came less than a week before the MPC’s next official scheduled meeting on Wednesday, March 25.

In the meantime, Sterling tumbled to its weakest level against the US dollar in more than three decades, crashing through $1.20 against the US currency on March 18.

Source: theguardian.com

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