'The solution of yesteryear': Industry says BoE rate cut is 'meaningless'

Move from central bank is ‘surprising’

The "surprising" decision from Bank of England Governor Andrew Bailey to cut UK interest rates to their lowest-ever level of 0.1% has been slated by industry commentators, who have called the move "meaningless", "the solution of yesteryear" and nothing more than a bid to "be seen doing something" after the European Central Bank (ECB) "rolled out the QE cannons" yesterday (19 March).

Bailey announced the bank would slash UK interest rates by 15 basis points, having already cut rates by 50 basis points one week before from 0.75% to 0.25%. Yesterday's move, which is the latest monetary policy bid to help tackle the economic fallout caused by the coronavirus pandemic, marks the lowest interest rates seen in England since the Bank was founded in 1649. BoE cuts rates to 0.1% in latest pandemic response Additionally, the BoE voted in favour of an additional £200bn of government bonds and sterling non-financial investment-grade corporate bonds purchases, bringing the ...