The Bank of England lowered the base rate from 0.5 to 0.25 percent — a record low for the UK indicator. The regulator has softened monetary policy for the first time in 7 years. The relevant information contains in the message of the British Central Bank.
The decision of the Bank of England takes into account the results of a referendum on British exit from the EU, as well as the need to achieve a target inflation at 2 percent.
Also, was the increased volume of asset repurchase program from the market (it must saturate the economy with money) — from 375 to 435 billion pounds.
A referendum on the status of the EU has gone in the UK on June 23. Supporters of Brexit (exit) won with 51.9% of votes. Some members of the financial community predicted the United Kingdom the reduction in the rate of growth and the General deterioration of the economic situation in connection with the decision of the citizens.
The last time the Bank of England change the base rate in March 2009. It was reduced from 1 to 0.5 percent.
