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Bank of England cuts interest rates to 0.25% and expands QE Updated: 2016-08-05 04:05:32 KST

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2016-08-05

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The Bank of England has cut interest rates for the first time since 2009‚ and announced a fresh round of economic stimulus measures. According to the central bank‚ the economy is expected to stagnate in the second half of 2016 following Britain's vote to leave the European Union. In an effort to stimulate the British economy‚ the bank cut the rate from zero.five percent to zero.two-five percent. It also launched two new schemes‚ one to buy ten billion pounds -- slightly over 13 billion U.S. dollars -- in corporate bonds and a new term funding scheme for banks that would provide up to one-hundred-31 billion dollars from central reserves. The expanded bond purchases will begin in September. Reporter : hs_kim@arirang.com

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