The Bank of England (BoE) has announced it will hold interest rates at 0.5%.

In addition to holding rates, the BoE Monetary Policy Committee (MPC) unveiled a package of measures intended to stimulate economic growth in the wake of the UK’s decision to leave the European Union.

Stimulus Package Details

• A new Term Funding Scheme (TFS) to provide cheap funding to banks, ensuring they pass on the rate cut to borrowers.
• An expansion of the BoE’s asset purchase program, including £60 billion of UK government bonds and £10 billion of UK corporate bonds.

The MPC voted unanimously to implement the TFS and expand the asset purchase program.

Economic Outlook

The BoE has revised down its growth forecasts for the UK economy, citing uncertainty related to Brexit. The stimulus measures are intended to cushion the impact of this uncertainty and support economic activity.

The central bank indicated that further monetary policy easing may be necessary if the economic outlook deteriorates further.