The Bank of England (BoE) lowered its interest rate by 50 basis points to 0.25%, the Bank of England move comes just a week after the US Federal Reserve (Fed) lowered interest rates. basic.
Headquarters of the Central Bank of England
Bank of England also announced a new term funding program to support small and medium-sized businesses, with additional incentives for banks to support more lending.
This is also the first time BoE has adjusted abnormal interest rates since the 2008 financial crisis and the first time to lower interest rates since August 2016. Today, British Finance Minister Rishi Sunak will also announce this year's budget. Observers believe that the budget will have more funds for health to deal with Covid-19, while adding stimulus.
In his policy statement, the BOE emphasized: “Although the level of economic shock from the COVID-19 epidemic is quite high, economic activity in the UK will certainly weaken in the coming months.”
BoE did not announce any additional bond acquisition program, but lowered the capital provision ratio for banks from 1% to 0%, while implementing a new policy to support small and medium enterprises. Both of these moves are intended to maintain credit flow.
The pound weakened against the US dollar following the news. Last week, the Federal Reserve and the Central Bank of Canada also lowered interest rates. The European Central Bank (ECB) is forecast to have the same move tomorrow, March 12.
He currently records more than 380 nCoV infections, including 6 deaths. British Deputy Health Minister Nadine Dorries on March 10 also reported being infected with nCoV. Local media reported that she had contacted hundreds of people, including British Prime Minister Boris Johnson.
He has so far not taken any drastic measures to prevent the virus from spreading, while officials have expressed confidence that they can stop the disease. Health experts fear the situation in the UK is moving in the right direction of the Covid-19 crisis, crippling Italy.
According to AZCoin News
Crypto loans are only from 5.9% annual interest rate – you can use the money effectively without selling coins. Earn up to 8% interest per year with stablecoin, USD, EUR & GBP with insurance up to 100 million. Come on, get started now! →