Bank of England cuts rates, signals slower pace of cuts ahead

Bank cuts Bank Rate to 0.25% from 0.50%, the lowest level in its 325-year history

The Bank of England has cut interest rates to a record low of 0.25% from 0.50%, in a bid to stimulate the UK economy amid the coronavirus pandemic.

The move, which was widely expected by economists, takes the Bank Rate to its lowest level in its 325-year history.

The Bank also said it would continue to buy government and corporate bonds in an effort to keep borrowing costs low and support the economy.

Bank signals slower pace of cuts ahead

In a statement, the Bank said it expects to make further rate cuts in the coming months, but at a slower pace than in recent months.

The Bank said it was "too early to say" whether the UK economy was already in recession, but it warned that the outlook was "unusually uncertain".

The Bank's decision to cut rates comes after the UK economy shrank by 2.5% in the first quarter of 2020, the largest quarterly decline since the financial crisis.

The Bank said it expected the economy to contract by 14% in the second quarter of 2020, the largest quarterly decline on record.

The Bank's rate cut is likely to be welcomed by businesses and consumers, as it will reduce the cost of borrowing and make it easier to access credit.

However, the Bank's decision is also likely to put pressure on the pound, which has already fallen sharply against the US dollar and the euro in recent months.

The Bank's next meeting is scheduled for June 18, 2020.