Bank of England leaves policy rate unchanged at 0.1% as expected

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The Bank of England’s Monetary Policy Committee held the policy rate unchanged at 0.1% in March after making two emergency rate cuts earlier in the month to help the economy in the face of the coronavirus outbreak. The Asset Purchase Facility remained steady at €645 billion as well.

Key takeaways from the policy statement

“Economic consequences of coronavirus developments are becoming more apparent and a very sharp reduction in activity is likely.”

“There is risk of longer-term damage to the economy.”

“Saw widespread evidence of disruption to market functioning.”

“UK and global financial conditions have tightened materially.”

“Monetary policy should take into account the broader public policy response to  reduce the disruptive consequences for households and businesses of the spread of COVID-19.”

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