Bank of England cuts rate as coronavirus spreads

She said: “Rent and wage subsidies and tax credits would give companies confidence in their ability to manage down their costs in line with their falling revenues.

"This will prevent a vicious cycle of demand weakness leading to job cuts and further demand weakness. In short, interest rate cuts will help, so long as they are playing the supporting act to pro-active government stimulus.” 

But Anna Stupnytska, head of global macro at Fidelity International, said: “While the action from the BoE and the Treasury on the same day signals the policymakers’ preparedness to respond, the high degree of uncertainty around the extent of the coronavirus spread and its economic impact makes it difficult to gauge whether the new policy measures are going to be sufficient to avert a recession this year.”

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