Like other central banks around the world, the Bank of England intervened sharply in an attempt to stop the effects of the coronavirus.
The bank lowered it's numbers to it's current record low at two emergency meetings in early March. The bank also increased it's quantitative easing (QE) program by £200 billion. Today, the regulator left the basic interest rate unchanged (0.1%).
The Bank of England said the UK economy could contract by 14 percent in 2020, and then rebound sharply in 2021, as it keeps interest rates at a record low.
As coronavirus destroys the economy and oil prices, inflation is expected to fall below one percent in the coming months. It will remain low and recover only to a two percent target in 2022.