World News

BoE says will buy gilts at pace in new stimulus

LONDON (Reuters) – The Bank of England said it would buy British government bonds at a much faster pace than normal in response to the coronavirus outbreak, part of a major stimulus package it announced on Thursday.

“Given prevailing conditions, the Bank intends – at least initially – to make purchases at a materially higher pace than in the recent past,” the BoE said in a statement.

The BoE cut interest rates to 0.1% on Thursday, its second emergency rate cut in just over a week, and promised 200 billion pounds of additional bond purchases in a fresh attempt to shield Britain’s economy from the impact of the outbreak.

The BoE’s new gilt purchases will commence on March 20.

(Reporting by Andy Bruce, editing by Estelle Shirbon)

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