The Bank of England has just announced that it has slashed its base rate to a record low of 0.1% from 0.25%. The unanimous decision made today was “to meet the needs of UK businesses and households in dealing with the associated economic disruption,” it said.
According to the Bank of England, the coronavirus pandemic will result in a “sharp and large” economic shock, and the move will help to cushion the blow. Today’s move follows the UK’s monetary policy committee (MPC) decision to cut the Bank rate to 0.25% from 0.75% just a week ago.
The MPC is due to meet again next Wednesday as governments and central banks globally adjust to the deteriorating business activity, as Europe’s economies go into lockdown conditions.