Coronavirus may trigger Bank Base Rate cut

by Property118.com News Team

14:05 PM, 2nd March 2020
About 9 months ago

Coronavirus may trigger Bank Base Rate cut

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Coronavirus may trigger Bank Base Rate cut

Markets are starting to price in a Bank of England Base Rate decrease of at least 0.25% as central banks around the world marshal what monetary fire power they can against the potential economic consequences of a global Coronavirus pandemic.

The next Monetary Policy Committee (MPC) meeting is due to take place on Thursday the 26th March.

The FTSE 100 bounced back and Sterling fell as the Bank of England today confirmed it would take “all necessary steps” to uphold the British economy’s stability in the face of the Coronavirus outbreak.

A Bank of England spokesperson added: “The Bank continues to monitor developments and is assessing its potential impacts on the global and UK economies and financial systems.”

The Bank is working closely with HM Treasury and the FCA as well as our international partners to ensure all necessary steps are taken to protect financial and monetary stability.”

The OECD warned of a short, but intense global economic downturn. And it added the Coronavirus could create a domino effect as it spreads through advanced economies.

The Bank of Japan issued a statement: “The BoJ will monitor developments carefully, and strive to stabilise markets and offer sufficient liquidity via market operations and asset purchases.”

“Overseas and domestic financial markets continue to make unstable movements due to heightening uncertainty over the impact on the economy from the spread of the Coronavirus.”


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Comments

Question Everything

11:04 AM, 5th March 2020
About 9 months ago

They don't need a reason, just an excuse.

Would not be surprised if they even use it as an excuse for the next recession.

Circus.

terry sullivan

15:20 PM, 5th March 2020
About 9 months ago

base rate should have been cut in december after election--neither bojo or javid have a clue

homemaker

15:37 PM, 5th March 2020
About 9 months ago

There is an argument that cutting base rates will have no effect what so ever in countering a downturn due to the affects of Coronavirus. If there is a downturn, which now seems to be widely expected, then presumably this will impact on house prices?

Question Everything

15:59 PM, 5th March 2020
About 9 months ago

There's an argument that nothing will stop a down-turn. But giving free money to the boys-club means they can get out of the hole easier before they let it pop. The Covid scam is just a scape goat.

Mick Roberts

17:49 PM, 5th March 2020
About 9 months ago

I concur.


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