You are here: Home - Saving & Banking - News -

Bank of England announces emergency interest rate cut

Written by:
The Bank of England (BoE) has cut interest rates from 0.75% to 0.25% in an attempt to support the economy in the wake of the coronavirus crisis.

The emergency cut means the base rate is back down to its lowest level in history.

The Bank said: “The reduction in Bank Rate will help to support business and consumer confidence at a difficult time, to bolster the cash flows of businesses and households, and to reduce the cost, and to improve the availability, of finance.”

It comes as the chancellor is expected to announce further measures to help individuals and businesses affected by the coronavirus in his Budget later today.

The unexpected rate cut follows a similar move by the US Federal Reserve last week.

It is the first unscheduled interest rate change from the BoE since the banking crisis 12 years ago.

The Bank has also announced a four-year loan scheme to support lending by banks to small and medium sized firms.

Six people in the UK have now died from the coronavirus and there have been 324 confirmed cases.

Laura Suter, personal finance analyst at investment platform AJ Bell, said the package of measures may help businesses but will be “light relief for individuals”.

“Mortgage rates are already near record lows and it’s unlikely providers will be able to cut them much more – let alone pass on the entire rate cut. The exception is those on tracker rates, who will see a near-immediate effect on their monthly repayments,” she said.

“What’s more, savers who have already seen a swathe of cuts to the interest they get on their cash are likely to be hit further.”


There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Barclays sign
Barclays enables app customers to make payments from rival banks

Barclays has launched a new feature within its app allowing customers to make payments from current accounts held with rival...