BoE cuts rates to 0.1% in latest pandemic response

Boosts QE measures

The Bank of England (BoE) has cut its interest rate by 15 basis points to 0.1% as the central bank moves to reduce the “economic shock” stemming from the coronavirus pandemic.

After an emergency meeting on 19 March, the bank's Monetary Policy Committee (MPC) also voted in favour of an additional £200bn of government bonds and sterling non-financial investment-grade corporate bonds purchases, bringing the total to £645bn. Market Movers Blog: BofAML forecasts 12% US growth 'collapse' in Q2 The BoE explained the decision was necessary following action taken by the bank and the Chancellor Rishi Sunak throughout the month to tackle the economic impact of the pandemic. It said the MPC had now determined that the bank's measures need to go further, and also vot...