Bank of England makes emergency interest rate cut

March 11, 2020

Bank of England building, London, UK

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.”

However, this downturn encourages individuals to stray from savings rates that will continue to erode funds for the foreseeable future, allowing them to consider profitable investment opportunities that might have previously been overlooked.

For example, commercial property has been the best performing asset class of the last two decades, consistently outstripping the FTSE 100, Cash ISA´s and UK gilts. The stability of this sector in the last five years is evidenced by the average yield remaining stable at 5%.

Now, Accumulate Capital is offering investors a commercial development finance opportunity in the form of 72 starter units within the UK´s manufacturing and distribution hub: Doncaster, complete with market-leading ROIs much higher than the average annual yield.

Download the SME Park´s investment memorandum HERE to discover how this project satisfies the immense demand within the area, as well as providing an advantageous alternative to shrewd investors looking to jump ship.


Back to top