The Bank of England on Thursday slashed interest rates to a record low 0.25 percent and announced a vast stimulus package to combat economic fallout from Britain’s looming EU exit.
Policymakers voted unanimously to reduce rates by a quarter-point, the bank said in a statement after its latest meeting, cutting borrowing costs for the first time in more than seven years.
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The BoE also delivered a £170-billion ($227-billion, 200-billion-euro) stimulus package, and axed its economic forecasts for 2017 and 2018 in the wake of the nation’s June 23 Brexit referendum.
The bank’s nine-member Monetary Policy Committee (MPC) also agreed to re-activate its quantitative easing (QE) bond-buying scheme, lifting it by £60 billion to £435 billion in the first increase since 2012.
It was the first interest rate reduction since March 2009, when the bank cut to the previous historic low 0.50 percent — and launched the radical QE policy to stimulate lending and growth during the notorious global financial crisis.