Bank of England holds rates at 0.1%; warns of 'sharp' UK downturn

Historic low

The Bank of England has maintained the historic low 0.1% base rate and predicted a gloomy economic outlook for the UK in the face of the coronavirus pandemic.

On 25 March, the Monetary Policy Committee (MPC) voted unanimously to maintain the base rate at 0.1% - the lowest level in the Bank's history. It previously stood at 0.25% after a cut from 0.75%. The Bank also previously voted unanimously to continue its quantitative easing programme by adding an additional £200bn of government bonds and sterling non-financial investment-grade corporate bonds, taking its total holdings of UK government debt to £645bn. That decision was taken at the emergency meeting on 19 March. Minutes of the meeting on 25 March said the spread of coronavirus - and t...