The Bank of England has confirmed that interest rates have been cut to 0.1%, a reduction from 0.25%, the lowest level in the country’s history. The move comes just two weeks after an announcement that interest rates would be cut from 0.75% to 0.25%.
Referring to the emergency meeting, a spokesperson for the bank said:
“At its special meeting on 19 March, the MPC judged that a further package of measures was warranted to meet its statutory objectives. It therefore voted unanimously to increase the Bank of England’s holdings of UK government bonds and sterling non-financial investment-grade corporate bonds by £200 billion to a total of £645 billion, financed by the issuance of central bank reserves, and to reduce Bank Rate by 15 basis points to 0.1%. The Committee also voted unanimously that the Bank of England should enlarge the TFSME scheme, financed by the issuance of central bank reserves.”