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Bank of England cuts interest rates again in response to coronavirus and sends the pound soaring from 34-year low

The Bank of England has announced that it is cutting interest rates by a further 15bp taking the effective rate to 0.1%.

Warren Buffett says ‘the most important question in the world’ is what negative interest rates would do to markets

"I don't know the answer. Now, if we knew the answer, it wouldn't be the most important question."
Cutting interest rates encourages spending.

When the Fed cuts interest rates, it affects everything from your savings account to your auto loans

When the Fed cuts interest rates, it's to encourage spending and growth, and it affects everything from savings accounts to mortgages to loans.

‘This is war’: Stocks, oil, Treasury yields, and bitcoin plunge as the Fed’s rate cut fails to allay coronavirus fears

"The Federal Reserve has panicked. It didn't just fire its bazooka, it dropped an atom bomb of liquidity and monetary stimulus."

Mortgage refinances surge 79%, most since financial crisis, as people rush to capitalize on low interest rates

"Prospective buyers continue to be encouraged by improving housing inventory levels in some markets and very low rates," said Joel Kan of the MBA.

‘Drop in an ocean’: Bank of England’s emergency rate cut lifts European stocks, but coronavirus fears rattle global markets

"The Bank of England fired its big bazooka today, but it's really an appetizer for the main course later," one analyst said.

‘Shock and awe strategy’: Here’s what analysts are saying about the Bank of England’s emergency rate cut

"The coronavirus has initially hit supply chains and interest-rate cuts will not change that," one analyst said.

Trump slams ‘pathetic, slow moving’ Federal Reserve as the coronavirus hits the US economy

Even before the outbreak, Trump repeatedly called for more aggressive measures including quantitative easing and negative interest rates.

‘Headed for permanent recession’: Paul Krugman sounds the alarm after Treasury yields tumble and interest rates plunge

"Markets are implicitly predicting not just a recession, but multiple years of economic weakness," the economist said.