March 19, 2020 / 5:03 PM / 21 days ago

BoE says will buy gilts at pace in new stimulus

FILE PHOTO: Pedestrians walk past the Bank of England in the City of London, Britain, May 15, 2014. REUTERS/Luke MacGregor/File Photo/File Photo

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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