UK Central Bank Cuts its key rate from 0.75% to 0.25%

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UK Cuts the Key Rates

Inorder to give boost to the economy, the UK central bank has cut its key rate from 0.75% to 0.25%. This step is in line with the last week meeting of G7 finance ministers and central bank governors where they have come to consensus to provide “Appropriate Policy Steps” to control the impact of corona virus on world economies.

All major countries are cutting the interest rates like US, Japan, Australia, and Russia. Now UK has also joined in this category. Corona virus impact is being felt around the world.

US is planning to provide payroll tax cut to provide some support to consumption in the economy. IMF calls for “Substantial” stimulus to fight the impact of corona virus.

Markets around the world is tumbling due to virus impact and all the major indices have corrected more than 20% from its peak. Putting pressure on all the policy holders to come out with an economic stimulus like 2008 crisis Quantitative Easing.

Demand is so much impacted due to this issue that oil has fallen from $ 54 / barrel to $ 35/ barrel in last week. A leading indicator of negativity towards the world economies.

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