Bank of England Reduces Interest Rates by 0.5% to Reduce Virus Influence

Bank of England Reduces Interest Rates by 0.5% to Reduce Virus Influence

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The Bank of England lowered its basic interest rates by 50 points to 0.25% in order to support an economy that would suffer from the consequences of the coronavirus outbreak.

The Bank also said that the Monetary Policy Committee (MPC) was voting on launching a new term financing program, with additional incentives for small and medium-sized businesses. He did not elaborate on the size of the possibilities.

However, he did not change the asset purchase program.

“The reduction in Bank Interest will help support businesses and consumer confidence in difficult times, strengthen the cash flows of businesses and households, and reduce costs by improving the suitability of finances,” the bank said in a statement.

The pound, which was $ 1.2937 before the announcement, fell to $ 1.2873. While the 10-year UK Gilt yield increased from 0.24% to 0.28%, FTSE 100 futures reached 6.021 from 5.927 points.

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