A First 4 Years Later: After The USA, Now England Has Made A Discount

The Bank of England (BoE) lowered the policy interest rate by 50 basis points to 0.25 percent with an extraordinary meeting.

In a statement made by the Bank of England, it was reported that interest rates were reduced to combat the new type of coronavirus (Kovid-19) outbreak. The British Central Bank’s first rate cut decision since August 2016.

In the statement, which was stated that the policy interest rate was reduced from 0.75 percent to 0.25 percent with a 50 basis point discount, it was stated that BoE decided to implement a new periodic funding program for SMEs and to continue the asset purchase program at the level of £ 435 billion. The statement said that the decisions in question were taken unanimously.

Last week, the US Federal Reserve also dropped interest rates by 50 basis points to combat the coronavirus outbreak.