Interest rates cut to support businesses during coronavirus outbreak
Interest rates have been cut in an attempt to help banks support firms amid the coronavirus outbreak.
Borrowing costs are now at the lowest level in history, with rates reduced from 0.75 per cent to 0.25 per cent.
The decision will result in a reduced mortgage for some homeowners; however, others will have to wait until loan providers have reacted to the decision.
Overall, the action is intended to protect small and mid-sized businesses and their employees.
The Bank of England have also vowed to free up billions of pounds of additional lending power to allow banks to support firms.
Chancellor Rishi Sunak will announce the Budget later today, which is expected to reveal the party’s plans to support growth and jobs across the country.
He said that the NHS will be given "whatever resources it needs" during the outbreak.
Outgoing governor of the Bank of England, Mark Carney, said that there had been a "sharp fall in trading conditions" observed by policymakers.
He continued: “The Bank of England's role is to help UK businesses and households manage through an economic shock that could prove large and sharp but should be temporary.”
Carney noted that the overall economic damage caused by coronavirus remained unclear, however, that the country’s economy was expected to shrink in the coming months.
Evidence from China suggests that the country’s economy is to shrink in the first quarter, while other nations were subject to a “similar shift”.
At present there are 382 cases in the UK and the sixth death as a result of the disease has been reported.