RATE Group | Bitcoin Steadies as Bank of England Suddenly Cuts Rates to 11-Year Low
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Bitcoin Steadies as Bank of England Suddenly Cuts Rates to 11-Year Low

11 Mar Bitcoin Steadies as Bank of England Suddenly Cuts Rates to 11-Year Low

Posted at 09:15h in Bitcoin News by

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The United Kingdom’s central bank has followed the Federal Reserve in suddenly cutting interest rates — by the most since 2009. 

As various news outlets including the Financial Times reported on March 11, the Bank of England (BoE) said the move was in direct response to economic pressures posed by the ongoing coronavirus outbreak.

The UK aims to “support confidence”

The publication quoted a statement as saying:

“The reduction in Bank Rate will help to support business and consumer confidence at a difficult time, to bolster the cash flows of businesses and households, and to reduce the cost, and to improve the availability, of finance.”

The move takes the BoE base rate to just 0.25%, a reduction of 0.5%. The Fed rate is now 1.25%, with more cuts forecast this year.

The pound immediately reacted, shedding 0.5% against the US dollar, to subsequently recoup some of the losses. 

While Bitcoin (BTC) failed to react, supporters of the cryptocurrency maintain that stimulating…

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