The Bank of England has cut interest rates to 0.1% in an emergency move to support the UK economy amid the coronavirus outbreak.
This is the second time in just over a week that the Monetary Policy Committee (MPC) has voted to cut interest rates, reducing them from 0.25% to 0.1% – the lowest ever in the Bank’s history.
The decision was also made to increase the Bank’s holdings of the UK government and corporate bonds by £200 billion, bringing it to a total of £645 billion, in an attempt to lower the cost of borrowing.
The MPC also voted unanimously that the Bank of England should enlarge the Term Funding Scheme for small and medium-sized enterprises (TFSME).
