bank of england

BoE cuts interest rates to 0.1%

The Bank of England has cut the bank rate to 0.1% as a result of the coronavirus pandemic.

At a special meeting today (19th March), the Monetary Policy Committee (MPC) agreed on a further package of measures.

In addition to the interest rate cut, the MPC also voted to increase the BoE’s holdings of UK government and corporate bonds by £200bn to a total of £645bn.

The committee also voted unanimously that the Bank should enlarge the TFSME scheme, financed by the issuance of central bank reserves.  

The majority of additional asset purchases will be comprised of UK government bonds.

The next regularly scheduled MPC meeting will be held on 25th March.

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