Furthermore, the central bank added a new term-funding program for banks, providing lenders ultra-cheap, four-year loans to help finance lending for households and businesses as an additional step to stimulate the economy.
SEE MORE: Brexit Continues to Drag on Pound ETF, Sends GBP to Three-Decade Low
The aggressive moves were seen as a way to stimulate Britain’s economy and to mitigate the fallout of the country’s vote to leave the European Union, or so-called Brexit.
Looking ahead, investors and market watchers are still waiting on the government to implement fiscal stimulus measures as well.
“What will really count is whether the Chancellor [of the Exchequer]provides a fiscal boost in the autumn. Monetary policy can’t do much more on its own,” Lucy O’Carroll, chief economist at Aberdeen Asset Management, told the Wall Street Journal, arguing that the BOE had to announce a barrage of measures Thursday more “for the sake of its own reputation than the economic benefits.”
For more information on the U.K., visit our United Kingdom category.
iShares Currency Hedged MSCI United Kingdom ETF