Bank of England cuts base rate and orders £200bn printed

Yesterday afternoon, the Bank of England cut its base rate to a joint-record low of 0.1% – warning the coronavirus pandemic will result in a “sharp and large” economic shock. Its rate-setting committee, led by new governor Andrew Bailey, also decided at its unscheduled meeting to re-start the post-crisis asset purchase programme.

The Bank said it would make an extra £200bn in bond purchases, effectively printing new money to push into the financial system. Paresh Raja, CEO of NACFB Patron Market Financial Solutions, responded: “ Not since the Second World War have we seen so many emergency actions taken by the country’s leaders to ward off an economic crisis and keep the lights of houses and businesses switched on. This latest decision by the Bank of England, while not entirely surprising, will have a further impact on both consumers and businesses, particularly financial lenders .”

The National Association of Commercial Finance Brokers (NACFB) is the UK’s trade body for finance brokers. Established in 1992, the NACFB seeks to protect members and their clients from restrictive working practices, works to eliminate fraud and establish measurable standards of practice within the industry.

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