Coronavirus: UK interest rate cut to help economy during outbreak – By James Sillars (Sky News) / March 11 2020
Support for businesses is contained in the package of measures announced following an unscheduled meeting of policymakers.
The Bank of England has cut interest rates and announced help for businesses in an emergency move to provide support amid the coronavirus crisis.
Hours before Chancellor Rishi Sunak prepared to deliver his budget, which is expected to contain details of government measures, the Bank said it had cut interest rates from 0.75% to 0.25%.
It followed the lead set by the US Federal Reserve, which also cut its core rate by a similar margin last week following an unscheduled meeting of policymakers.
The Bank of England said it was to provide – at very close to the new Bank rate of 0.25% – a four-year loan scheme for small businesses to access cash via banks over the next 12 months.
It said the offer could provide up to £100bn in extra funding as firms expect to be squeezed by measures to restrict the spread of coronavirus – potentially crippling the economy.
The Bank’s Financial Policy Committee, which identifies and acts on potential risks in the financial system, also lowered the so-called counter-cyclical capital buffer for banks to zero from 1%.
Continue to article: https://news.sky.com/story/bank-of-england-announces-rate-cut-to-help-economy-amid-coronavirus-11955027
