(11 Mar 2020) The outgoing Governor of the Bank of England on Wednesday warned that the spread of the new coronavirus across the UK could have a significant impact on the economy, and announced an emergency bank rate cut to 0.25% to combat the financial impact.
Mark Carney 's comments came as the UK's Chancellor of the Exchequer Rishi Sunak outlined the government's budget, with a 30 billion-pound ($39 billion) package of measures designed to help the economy in the face of the spread of the new virus.
In addition to the rate cut, the bank announced a package of measures it hopes will keep money flowing through the economy.
A new funding scheme will focus particularly on small- and medium-sized firms and the bank also slashed to zero from 1% the amount of capital that banks have to keep in reserve, a move designed to bolster lending.
Carney said the measures - designed together with the British Treasury - could make hundreds of billions of pounds (dollars) available to firms and financial institutions.
For most people, the new coronavirus causes only mild or moderate symptoms, such as fever and cough. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia.
The vast majority of people recover from the new virus. According to the World Health Organization, people with mild illness recover in about two weeks, while those with more severe illness may take three to six weeks to recover. In mainland China, where the virus first exploded, more than 80,000 people have been diagnosed and more than 58,000 have so far recovered.
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