Coronavirus: Bank of England announces interest rate cut to record-low 0.1%

Andrew Bailey

The Bank of England has slashed interest rates to a new historic low of 0.1% and unleashed another £200 billion to boost the economy in its second emergency move in just over a week to combat the coronavirus hit.

The new governor of the Bank of England Andrew Bailey - who only took over this week - said the measures would be temporary and are meant to meet the needs of the economy, but the severity of the measures call into question whether they will work well enough.

This includes a second interest rate cut in under two weeks.The central bank's Monetary Policy Committee held an extraordinary meeting on Thursday 19 March and decided unanimously to cut the headline interest rate by 15 basis points from 0.25% to 0.1%.

Markets reacted optimistically to the news, with the FTSE ending the day up 1.4% and the pound rising against the dollar.

"We have to take into consideration what the likely scale of government financing is, because that's clearly going to amplify through the markets", Bailey told reporters.

Following the latest BoE action, sterling jumped 1.0 per cent to $1.1719, having hit the lowest level for 35 years on Wednesday as markets doubted enough was being done by the United Kingdom government and BoE to address the fallout.

Ola Suspends Shared Rides To Curb Coronavirus Spread
Uber has said it would turn a profit this year, a goal that Mr Khosrowshahi said the company was still aiming for. Mr Khosrowshahi also said that when the crisis abates, the company would consider making acquisitions.

This follows Chancellor Rishi Sunak unveiling fresh measures to support businesses during the coronavirus crisis, including a £330bn loan pledge, £20bn in other aid and a moratorium on business rates.

"We have already seen easy-access rates fall since the 0.50% base rate reduction on March 11 and product cuts are still filtering down from providers".

Britain's authorities this week ramped up its makes an attempt to sluggish the unfold of coronavirus, urging individuals to keep away from assembly in bars and eating places and shutting faculties from Friday.

Bailey said rumours about a lockdown in London exacerbated Wednesday's chaos in British markets and he reiterated his opposition to closing trading.

The £200bn of quantitative easing will buy Government bonds and corporate debt, and will take the total QE in the system up to £645bn.

"There will be no query that the financial and monetary authorities are throwing every part they'll at this drawback to assist companies and households, cushion demand as a lot as is fairly attainable, and to cut back the long-term hit to provide".

Related News:

Most liked

Italy reports 651 new virus death, toll nears 5,500
The mayor told the Huffington Post that elderly are dying at home without testing, so the true numbers may be underreported. The nation of 60 million accounted for around 36.2 percent of the world s coronavirus deaths at 1900 GMT.

Minor League advocacy group created, demands $15K salaries for players
MLB proposed cutting 42 of the 160 required affiliated teams during those talks, a plan criticized by minor league team owners, fans and politicians.

U.S. Lines Up Multi-Trillion Dollar Coronavirus Aid Packages
Pelosi left the meeting saying there was no deal and that House Democrats planned to introduce their own legislation. The goal of the Senate is to hold an initial vote on Sunday and win Senate approval on Monday.

Global Smartphone Shipments Fall 38 Percent in Light of Coronavirus
"Smartphone demand collapsed in Asia last month, due to the Covid-19 outbreak, and this dragged down shipments across the world". Strategy Analytics' Linda Sui told CNBC that the breakdown occurred in every price range, not just the top models.

Donald Glover aka Childish Gambino’s New ‘3.15.20’ Album Hits Streaming Services
In 2019, he returned with the Hiro Murai-directed movie Guava Island , co-starring Rihanna. The hip-hop heavyweight has come through this weekend with his new 3.15.20 album.

Coronavirus: Saskatchewan reports 18 new COVID-19 cases, province totals 44
The Roy Romanow Provincial Laboratory (RRPL) in Regina is now able to confirm COVID-19 cases through its laboratory tests. Hinshaw said she is not aware of any of the province's 146 confirmed cases being linked back to the bonspiel.

Sydney's Bondi Beach closed after swarmed by crowds
NSW Police Minister David Elliott says about 450 people who showed up at Bondi Beach on Sunday morning will be told to leave. Social distancing is of utmost importance during this stage of the coronavirus outbreak.

Boris Johnson shuts down all pubs, restaurants in United Kingdom coronavirus fight
"The single best present that we can give is to spare them the risk of catching a very risky disease". But then he said: "I will certainly be sending her my very best wishes and hope to get to see her".

MLB releases plan to compensate minor league players during shutdown
Money is essential for minor leaguers, who are not paid during the off-season. The minor league season was scheduled to start April 9.

Spain exceeds a thousand deaths from coronavirus
The number of infections across the country also shot up to 24,926, the health ministry said in a statement. On Friday evening military personnel moved patients from hospitals in Madrid to others with more space.

Dire scenario for intensive care even if COVID-19 infection rate drops
The shelter system was already screening arrivals before someone with COVID-19 showed up at the door, the statement said. And Loblaws has joined Farm Boy and Sobeys food stores in installing plexiglass shields at checkout counters.

Huawei P40 Premium may feature 2 telephoto cameras
The Mate 30 series did not have Google services either, and has suffered poor sales in the west since its release because of it. If true, that would allow the handset to take crisp images at a wider variety of ranges than anything that has come before.

News2 days ago Facebook Desktop's new design now available for everyone
In addition, users are more likely to look at their screen during the coronavirus pandemic, which can help reduce eye fatigue. The developers, who have been working in this context, have been testing a new Facebook interface since January .

Google launches a coronavirus info hub to keep you up to date
There's also a statistics category that shows the number of confirmed cases, deaths and recoveries per country. At the same time, Google searches for additional information in addition to the corona virus search results.

North Korea says Trump wrote Kim, offered coronavirus cooperation
Observers say that North Korea obviously wants to tighten its control over its military and improve its missile technology. The coronavirus could be especially deadly in North Korea, which lacks adequate medical supplies and infrastructure.