BOE Cuts Rate to 0.25%, Adds QE to Combat Brexit

The Bank of England has implemented its first rate cut since 2009, reducing the rate to 0.25% and expanding quantitative easing by £60 billion. The Monetary Policy Committee (MPC) anticipates further rate cuts to near zero by year-end. The Bank also plans to initiate a corporate bond buying program. Market reactions include a drop in 10-year gilt yields and a decrease in the cable rate. The Bank has revised its growth forecast for 2018 down to 1.8% and adjusted inflation expectations, predicting an overshoot of the 2% target. These changes reflect upside risks to inflation and downside risks to growth.

What was the new Bank of England rate after the first cut since March 2009?

• 0.25%

• 0.75%

• 1.00%

• 0.50%

By how much did the Bank of England expand its quantitative easing program?

• £70 billion

• £80 billion

• £60 billion

• £50 billion

What was the unanimous vote by the MPC regarding the rate cut?

• 6 to 3

• 9 to 0

• 7 to 2

• 8 to 1

How much is the corporate bond buying program set to be over the next 18 months?

• £10 billion

• £5 billion

• £15 billion

• £20 billion

What is the revised growth forecast for 2018 by the Bank of England?

• 1.8%

• 2.0%

• 1.5%

• 2.3%