Giles Coghlan, Chief Currency Analyst at HYCM said: “Much can be said about the timing of this cut. It comes not only amidst one of the biggest public health crisis in recent memory, but on the day Boris Johnson’s government will deliver its first highly anticipated budget.
“Like the US, the hope is to bring some immediate relief to businesses and also encourage a spike in new investment activity. It looks to be another eventful few days of trading.
“This is expected to be a temporary cut with interest rates being increased when the coronavirus outbreak is behind us. It will be interesting to see how the combination of fiscal stimulus from the Government and monetary stimulus from the Bank of England will impact the GBP today. Expect a choppy day for the GBP.”