The Bank of England has cut rates for the first time since 2009, in a move designed to negate the economic effects of the Brexit vote.
The Monetary Policy Committee voted unanimously in favour of reducing interest rates from 0.5 percent to 0.25 percent. The central bank also announced further measures to provide additional support to the economy in the wake of the referendum. These include a new Team Funding Scheme to reinforce the pass-through of the cut in Bank Rate; the purchase of up to £10 billion of UK corporate bonds; and an expansion of the asset purchase scheme for UK government bonds.
The decision to leave the European Union at the end of June has led to increasing economic uncertainty, with warnings over the future stability of the British economy coming thick and fast. On Wednesday, Markit lowered the British PMI figure to 47.3, the lowest figure since April 2009.
UK Investor will be live-tweeting the press conference taking place at 12.30PM. Please tune in to @ukinvestormag on Twitter.
04/08/2016
