The Bank of England held an emergency meeting to cut interest rates and increase purchasing bond to over 750 billion USD

At an emergency meeting on Thursday, the Bank of England Monetary Policy Committee (BOE) agreed to reduce the base rate by a further 0.15% to 0.1% and increase the size of the bond purchase program from 200 billion pounds to 645 billion pounds (approximately US $ 752 billion). Earlier on March 11, BOE cut the base rate from 0.75% to a previous record low of 0.25%. BOE said that most asset purchase programs would include British Government bonds and would be completed as soon as possible. BOE launched that move after a series of unprecedented measures of global central banks in recent times. In particular, many central banks have aggressively increased stimulus measures to combat the coronavirus pandemic. The pound gained after the news, approaching 1.4% to $ 1.1770 on Thursday evening. Reportedly, on Wednesday, the currency has plunged to the lowest level in 35 years. “The economic shock will be strong and great.” “In recent days, with the bond markets of some developed economies, the conditions in the UK bond market have also worsened when investors find shorter-term tools to replace for high liquidity reserves of the central bank, ”the BOE said. “Consequently, financial conditions in the UK in particular and worldwide in general are tight,” the Bank added. So far, the UK has recorded 2,644 cases of coronavirus nationwide, this data from Johns Hopkins University shows. British health authorities said that 29 deaths on Thursday, bringing the total number of deaths in this country to 128. “The spread of Covid-19 and the measures were taken to prevent the virus that will bring a great and strong shock to the economy, but only temporarily,” the BOE said in a statement. It is expected that the next BOE executive meeting will take place on March 26 and the minutes of the meeting will be published the next day. On Tuesday, British Finance Minister Rishi Sunak announced  £ 330 billion (the US $ 398 billion) of government-backed loan to businesses. Besides, British Prime Minister Boris Johnson announced that UK schools will be closed from Friday. At the daily news conference of Government on Wednesday, Prime Minister Johnson said: “Schools will be closed until further notice.”