Name: UK interest rates cut to 0.25%
Uploaded: 2020-03-16T21:00:48.000Z
Duration: 5 min 49 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

Well, I mean, I think a lot of people case thought that they were going to cut interest rates at some point.

Modal verbs - B1

But no, they they they might leave it until their their official meeting, which was later on this month.

Adverbs of degree

So it's definitely a bit of a surprise in terms of the timing.

It's very unusual to have an emergency cut that comes outside their normal schedule.

You know, that kind of brings me back to the era of the financial crisis.

Also, skeletons dramatic normally when they cut interest rates will move interest rates.

It's by perhaps the course of a percentage point each time and this time around, obviously half a percentage point.

It is obviously down to no 0.0.25 That's lower they've ever been in the past, down after the off the referendum, they cut it to that kind of level.

But this is, you know, it kind of into very, very, very low territory and the nature of it coming on the day of on Budget day, I don't think that is supposed to be a coincidence.

The fact that they have done this just in the chocolate is about to announce a whole series of measures backed up something that we heard from based Marconi and and you'd alien.

This is the last week of Mark Carney's tenure as governor, so I imagine Andrew Bailey is the next governor.

As of next Monday, we'll have been involved in this position and we're gonna hear more about nine o'clock.

But they were both saying in them the kind of testimony with Treasury Select Committee and last week that it was right to have some coordination between the central bank on dhe, the government.

When you're doing these measures, so what?

The clue is that there is going to be curved, potentially some big stuff in the budget later on Today.

The idea is to do a shock and all set of measures.

You've just had the monetary and they've announced their interest rate cut before market opened.

That reason is gonna be there early in the morning, and you now have the fiscal policy potentially coming on later in the form of the budget, and it just seems to suggest we're potentially gonna have a more dramatic move from the government that I think people had expected.

It follows in the wake of the Federal Reserve, the U.

Central bank, they will say, cut interest rates just just last week.

So I think the expectation was that they would cut.

But this is perhaps bigger than expected and certainly earlier than expected.

Ondas tomorrow was saying there's also measures to help small businesses the short term kind of funding scheme similar again in some of the stuff we saw in the financial crisis.

But a very dramatic okay, unexpected on emergency move.

And it suggests that both the bank and the government are kind of moving in lockstep at the moment to try to do whatever they can prevent a recession and indeed in economic crisis.

But if it's ah move that we weren't necessarily expecting at this time and 1/2 percent down a new emergency measures, some might call it How does that reassure the public?

How does that not just make them even more anxious?

That's what I mean It's a question that's always the dilemma of doing these things.

I mean, you both need to reassure that you are taking every step necessary, But you are also underlining the fact that this is, to some extent an extreme move.

It is very unusual for a central bank to do this.

The big question will be to see what how people were.

I mean, you're asking tomorrow a moment ago.

If you have obviously floating rate mortgage, it's suddenly ah, lot cheaper on dhe.

For those who were hoping for interest rates to go up, a lot of people thought interest rates are gonna go up not long ago.

So now they are down a rock bottom again on DDE.

I think the other measures for business will hopefully mean that some businesses that might not have otherwise been able to survive just because they have short term funding issues.

It's not just it's not just about money, it's about time.

It's about ensuring the businesses who have lots of bills to pay have taxes to pay.

Um, but you know, we're facing the issue, the customers not necessarily turning up with people not shopping at the moment.

With employees potentially off sick, they are facing an issue with needing time to pay bills.

And that is gonna be I think the tenor of a lot of the measures that we get from the bank was robbed this morning and indeed from the government later on.

It's all about giving businesses and households time to kind of keep things ticking over until the business the disease has passed.

Hopefully in that kind of, you know, in a matter of three toe six months time, so but it is a big move.

There's no getting away from it, a big move, it very surprising.

 While I say we'd expected to actually do something at some point, the nature of it's coming on budget day just before the chancellor is going to unveil a whole series of measures that will lots majority would be about Corona virus. 