Bank of England makes emergency interest rate cut
The latest Budget features a number of strategies, including the Bank of England cuts, that will have a “maximum impact” on the economy, combined with further decisions focused on combatting the coronavirus downturn.
In order to maintain the shock caused by the rapidly spreading pandemic, the Bank of England has decided to slash interest rates in a wider package of measures implemented to buffer the UK’s economy during the turbulence.
At an unscheduled meeting, the monetary policy committee voted unanimously to cut the bank’s interest rate from 0.75% to 0.25%, leaving almost no room to cut rates further.
The cut was unveiled by Mark Carney, in his final week as the governor of the Bank of England. He announced that the new strategies have been designed to work with the chancellor Rishi Sunak’s budget, which is due to be unveiled on Wednesday at 12.30pm.
“Although the disruption arising from Covid-19 could be sharp and large, it should be temporary,” the Bank said.
“The Bank of England’s role is to help UK businesses and households manage through an economic shock. These measures will help to keep firms in business and people in jobs and help prevent a temporary disruption from causing longer-lasting economic harm.”
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