The Speaker
Friday, 14 June 2024 – 07:18

Emergency cut to UK interest rates amid Coronavirus outbreak

The Bank of England has lowered interest rates amid the Coronavirus outbreak.

The Governor of the Bank of England, Mark Carney said that the emergency cut will provide relief “at a difficult time”. The Bank is also set to free up extra funds of lending power to help banks support firms as the virus outbreak continues to impact the economy.

Rates have been reduced to 0.25%, the lowest level in history down from 0.75%.

The Bank said “Although the disruption arising from Covid-19 could be sharp and large, it should be temporary”.

The announcement comes on the day where UK Chancellor Rishi Sunak is due to deliver his first budget. The emergency cut in interest rate will reduce the mortgage bill of a minority of homeowners while saving will generally become less attractive.

6 people have died from the COVID-19 coronavirus in the UK so far, while 382 have been infected.


Photo Credit: Images George Rex via Flickr under licence (CC BY-SA 2.0)

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