The Bank of England has cut interest rates to their lowest level in history in the latest measure to stem the impact of Coronavirus.
It is the second rate cut in just over a week bringing rates down from what was the joint record low of 0.25% to the new low of 0.1%.
The move, agreed by the Bank of England’s Monetary Policy Committee, comes just four days into the tenure of Andrew Bailey, who only took from over Mark Carney as governor of the Bank of England on Monday.
The Bank also announced a £200 billion increase to a process known as quantitative easing, whereby a central bank purchases government and business debts and bonds, therefore freeing up capital for the economy.
Dr Ivan Petrella, associate professor of economics at Warwick Business School, said: “This will be vital for small businesses, which are most vulnerable to the Covid-19 shock as they tend to rely on regular cash flows to keep their business afloat.