In a shock move today (19 March 2020) the Bank of England have cut interest rates to an historic low of 0.1% and restarted Quantitive Easing buying up £200bn of government bonds.

In a special meeting held at the Bank today members of the Monetary Policy Committee voted unanimously for the cut to the lowest base rate the UK has ever seen.

The further cut today was especially surprising coming only a week after the previous cut of 0.5% to 0.25% – itself a record low.

Borrowers – especially the majority of business owners who have a higher tendency to be exposed to variable rate funds, will see reduced mortgage and loan payments over the next few weeks as their payments are recalculated.

Coronavirus business finance update