well I mean I think a lot of people
case'll but they were going to cut
interest rates at some point but you
know they thought they might leave it
until their their official meeting which
was later on this month so it's
definitely a bit of a surprise in terms
of the timing it's you know it's very
unusual to have an emergency cut that
comes outside their normal schedule you
know that it kind of brings you back to
the era of the financial crisis last
time they were doing it so on that front
it's dramatic also the scale of it is
dramatic normally when they cut interest
rates or move interest rates it's by
perhaps a quarter of a percentage point
each time and this time around obviously
half a percentage point it suggests they
are really worried this is a big move it
is obviously down to null point two five
that's as low as they've ever been in
the past down after the off the B
referendum date they cut it to that kind
of level but this is you know it kind of
into very very very low territory and
the nature of it coming on the day of
budget day I don't think that is is
supposed to you know be a coincidence
it's the fact that they have done this
and just as the chocolate was about to
announce a whole series of measures
backstop something that we heard from
both Mark Carney and Angie Bailey and
that's the other kind of striking think
a literally this is the last week of
Mark Carney's tenure as governor so I
imagine Andrew Bailey he's the next
governor as of next Monday will have
been involved in this decision as well
we're gonna hear more about at nine
o'clock
but they were both saying in their meet
and kind of testimony with Treasury
select committee and last week that it
was right to have some coordination
between the Central Bank and the
government when you're doing these
measures so what this I think tells us
and you know clue is that there is going
to be kind of potentially some big stuff
in the budget later on today the idea is
to do a shock and awe set of measures
you've just had the monetary and they've
announced their interest rate cut before
market open that's the reason it's kind
of see there early in the morning and
you now have a fiscal policy
potentially coming on later in this form
of the budget and it just seems to
suggest were potentially going to have a
more dramatic move from the government
that I think people had expected it
follows in the the wake of the Federal
Reserve the US interest the US central
banks they also cut interest rates just
just last week and so I think the
expectation was that they would cut but
this is perhaps bigger than expected and
certainly earlier than expected and as
tomorrow was saying there's also
measures to help small businesses
short-term kind of funding schemes
similar again can some of the stuff we
saw in the financial crisis and but a
very dramatic a unexpected and emergency
move and it suggests that both the bank
and the government are kind of moving in
lockstep at the moment to try to do
whatever they can to prevent a recession
and indeed an economic crisis but if
it's a move that we weren't necessarily
expecting at this time and a half of the
sent down an emergency measure some
might call it how does that reassure the
public how does that not just make them
even more anxious that's all I mean
there's a good question that's always
the the dilemma with doing these things
I mean you you both need to reassure
that you are kind of taking every step
necessary but you are also underlining
the fact that this is to some extent an
extreme move this is a moment you know
there's very unusual for a central bank
to do this the big question will be to
see what how people react so I mean you
know you asking tomorrow a moment ago
you know how will people notice well
this will affect your mortgage if you
have obviously a floating rate mortgage
it's suddenly a lot cheaper and
obviously it'll affect your savings as
well which we astray ssin for those who
who were hoping for interest rates to go
up
I mean a lot of people thought interest
rates are going to go up not all that
long ago so now they are down at
rock-bottom again and I think the other
measure for business will hopefully mean
that some businesses that might not have
otherwise been able to survive just
because they you know have short term
funding issues you know the issue here
Kay is it's not just it's not just about
money it's about time it's about
ensuring the businesses who you know
have lots of bills to pay
have taxes to pay but you know are
facing the issue with customers not
necessarily turning up with people not
shopping at the moment with employees
potentially off sick they are facing an
issue with needing time to pay bills and
that is going to be I think the tenor of
a lot of the measures that we get from
the bank we've heard this morning on
indeed from the government later on it's
all about giving businesses and
households time to kind of keep things
checking over until the business the
disease has passed hopefully and they're
kind of you know in a matter of three to
six months time so um but it is a big
move there's no getting away from it
it's a big move it that very surprising
move and while I say we expected about
to do something at some point the nature
of it's coming on budget day just before
the Chancellor it's going to unveil
whole series of measures that will vast
majority will be about coronavirus yeah
it's a big move and it underlines how
important this day is and how concerns
every wing of government is about
throwing the virus