The Bank of England is keeping interest rates unchanged at 0.10% and maintaining its asset purchase program at £645 billion, as decided during its meeting on Thursday morning.
However, the pound fell with the negative tone that dominated the statement of monetary policy accompanying the decision. The bank stressed that the UK economy was negatively affected by coronavirus outbreak which may push the economy into a historically deep recession with the possibility of a 30% drop in GDP in the first half of the year.
The bank revised its forecasts for GDP growth to 3% in the first quarter, followed by 25% in the second quarter, signifying that the UK is experiencing the deepest and fastest recession in more than a century.
