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Coronavirus: Bank of England announces interest rate cut to record-low 0.1%

The Bank of England has cut interest rates to a record-low level Credit: PA

The Bank of England has cut interest rates to a record-low level to ease pressure on the UK economy created by the coronavirus pandemic.

The rate cut is the second in just over a week, down from 0.25% to 0.1%.

The move by the Bank of England's Monetary policy comes after new governor Andrew Bailey said he would do what it takes to ease the pressure on businesses and Britons.

In a statement, the BOE said: "At its special meeting on 19 March, the MPC judged that a further package of measures was warranted to meet its statutory objectives.

"It therefore voted unanimously to increase the Bank of England's holdings of UK government bonds and sterling non-financial investment-grade corporate bonds by £200 billion to a total of £645 billion, financed by the issuance of central bank reserves, and to reduce Bank Rate by 15 basis points to 0.1%."

The Bank of England said that financial conditions in the UK and globally have "tightened" in recent days due to weaker market conditions.

The emergency meeting came less than a week before the MPC's next scheduled meeting on Wednesday March 25.

British businesses have been badly hit by coronavirus. Credit: PA

Just over a week ago, the Bank announced it was cutting interest rates from 0.5% to 0.25% to reduce the economic damage on the country.

It is the latest series of measures by the Bank of England and also the Government to safeguard jobs through the Covid-19 crisis.

Earlier this week, the Government announced a £350bn package in loans, grants and other measures.

The Bank of England said that financial conditions in the UK and globally have "tightened" in recent days due to weaker market conditions.

The emergency meeting came less than a week before the MPC's next scheduled meeting on Wednesday March 25.

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