The Bank of England slashed interest rates for the second time in as many weeks to bolster the economy against the Coronavirus outbreak.

Bank of england

Bank of england

Source: Shutterstock/ cristapper

Rates fell from 0.25% to 0.1% - the lowest level ever.

The move follows the bank’s decision last Friday to cut rates from 0.75% to 0.25%.

During a special meeting of the bank’s Monetary Policy Committee members voted to buy £200bn in government and corporate bonds.

“The purchases announced today will be completed as soon as is operationally possible, consistent with improved market functioning,” the bank said in a statement.

The outbreak is hitting the retail, hospitality, and events industries especially hard as people have been advised by governments globally to limit their travel, avoid going outside and gathering in large groups.

Banks will be able to lend money to affected businesses more cheaply as a result of the cut.

The latest cut joins a raft of assistance to struggling businesses that the government unveiled this week.

”The Bank of England is clearly trying to do all it can to limit the economic impact of the pandemic on the UK economy by setting interest rates to their lowest foreseeable level,” said Dr Elaine Garcia, senior programme leader at London School of Business and Finance (LSBF) of the rate cut.

“In truth, we will only know whether this has been enough when we are able to look back from the other side of this crisis.”