Bank Of England Maintains Key Rate At 0.1%, Confirms Stimulus Amid COVID-19 Epidemic

Bank of England Maintains Key Rate at 0.1%, Confirms Stimulus Amid COVID-19 Epidemic

The Bank of England announced on Thursday it maintained its key rate at 0.1 percent and proceeded with the stimulating policies unveiled last week in response to the coronavirus epidemic, warning of an uncertain outlook and underlining the uniqueness of the ongoing crisis

MOSCOW (UrduPoint News / Sputnik - 26th March, 2020) The Bank of England announced on Thursday it maintained its key rate at 0.1 percent and proceeded with the stimulating policies unveiled last week in response to the coronavirus epidemic, warning of an uncertain outlook and underlining the uniqueness of the ongoing crisis.

"Our MPC [Monetary Policy Committee] voted unanimously to maintain Bank Rate at 0.1%," the bank said in a statement.

The bank also confirmed the increase of its holdings of UK government and corporate bonds to 645 billion British pounds ($749 billion) from previous 435 billion British pounds, which was announced last week in a bid to support the economy amid the COVID-19 crisis.

The nature of the epidemic's impact on the economy differs from any of the previous crises, with outlook being highly uncertain, the central bank warned.

"There is little evidence as yet to assess the precise magnitude of the economic shock from Covid-19. It is probable that global GDP will fall sharply during the first half of this year. Unemployment is likely to rise rapidly across a range of economies, as suggested by early indicators," the bank said.

Earlier this month, the bank has already lowered its key rate by 50 basis points to 0.25 percent on March 11 and then by another 15 basis points to 0.1 percent on March 19.

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