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GBP/USD Tumbles as BOE Surprises with 50bp Cut to 0.25% Ahead of UK Budget
Wednesday, 11 March 2020 14:28 WIB | FISCAL & MONETARY |GBP/USDMark Carney,BOE

The Bank of England has announced a surprise 50 basis point rate cut from 0.75% to 0.25%.

Both outgoing Governor Mark Carney and his successor Andrew Bailey had previously said that they are ready to act in face of the coronavirus crisis. While the move is not a total surprise, but the timing “ outside a scheduled meeting “ is responsible for the sharp move in sterling. Moreover, the BOE's new rate of 0.25% puts its at the post-Brexit low, exhausting the "Old Lady's" firepower.

The BOE also announces a new SME worth £100 billion “ a lending scheme to businesses. The Monetary Policy Committee has left the bond-buying scheme unchanged at £435 billion.

GBP/USD has dropped from around 1.2935 to a low of 1.2830 before bouncing.

The government is set to unveil its new budget later today and the move may be coordinated.

Source : Fxstreet

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