Interest rates cut to 0.1%, a record low

Credit: shutterstock.com/Constantin Stanciu

The Bank of England has dropped interest rates to 0.1%, a record low, just over a week after adjusting the rate to 0.25%.

The decision comes as UK businesses prepare to be hit by the impact of Covid-19, as measures taken to contain the virus look set to create an “economic shock.”

At a special meeting today (19 March), the Monetary Policy Committee voted to cut the Bank rate and increase its holdings of UK government and corporate bonds by £200 billion.

The Committee also voted that the Bank of England should enlarge the TFSME scheme, financed by the issuance of central bank reserves.