Bank of England slashes interest rates to record low in coronavirus emergency move - CNN

In a statement, the central bank said that while the magnitude of the shock from the coronavirus remains "highly uncertain," economic activity is "likely to weaken materially in the United Kingdom over the coming months."

It said that slashing its main interest rate to a record low 0.25% would "help to keep firms in business and people in jobs and help prevent a temporary disruption from causing longer-lasting economic harm."

The Bank of England also noted the hit to financial markets in recent days, with stocks and commodities falling sharply and government bond yields reaching record lows.

"Indicators of financial market uncertainty have reached extreme levels," the bank said.

UK finance minister Rishi Sunak is expected to unveil more help for the British economy later on Wednesday when he publishes his budget for 2020.

The FTSE 100 gained 1.3% in early trading in London as investors cheered the synchronized response.

The move follows the US Federal Reserve's decision to slash interest rates by half a percentage point in an extraordinary move last week. The European Central Bank, which meets Thursday in Frankfurt, is expected to push interest rates deeper into negative territory and announce other measures to fight economic damage from the virus.

—This is a developing story. It will be updated.

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Bank of England slashes interest rates to record low in coronavirus emergency move - CNN
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