BOE slashes rates, back to lowest level in history
The Bank of England has announced an emergency cut in interest rates to shore up the economy amid the coronavirus outbreak, according to BBC News.
Policymakers reduced rates from 0.75 per cent to 0.25 per cent, taking borrowing costs back down to the lowest level in history.
The bank said it would also free up billions of pounds of extra lending power to help banks support firms.
It comes as the chancellor is expected to announce further measures to support growth and jobs in the budget later in the day.
Mark Carney, the outgoing governor of the Bank of England, said policymakers had seen a "sharp fall in trading conditions", including spending on non-essential goods.
"The Bank of England's role is to help UK businesses and households manage through an economic shock that could prove large and sharp, but should be temporary," he said, adding that bank's co-ordinated action on budget day was designed to have "maximum impact".
Chancellor Rishi Sunak has pledged to help the UK battle the impact of the coronavirus, saying the NHS will get "whatever resources it needs" during the crisis, while he is also expected to unveil measures to boost the self-employed and small businesses who are left out of pocket.
The interest rate cut was part of a package of measures introduced by the bank to support the economy.
It also announced a new £100-billion scheme to help ensure households and businesses - particularly small and medium-sized firms - benefit from the reduction in interest rates.
