The Bank of England has cut interest rates for the second time in a week in an emergency move to support the UK economy.

UK interest rates are now at a record low f 0.1%, down from the 0.25% outlined in last week's budget.

It was also announced the Bank was increasing its holdings of UK government and corporate bonds by £200 billion.

A statement published on the Bank of England website this afternoon said: "The spread of Covid-19 and the measures being taken to contain the virus will result in an economic shock that could be sharp and large, but should be temporary. 

"The role of the Bank of England is to help to meet the needs of UK businesses and households in dealing with the associated economic disruption.

"In light of actions to tackle the spread of the virus, and evidence relating to the global and domestic economy and financial markets, the Monetary Policy Committee (MPC) held an additional special meeting on 19 March.

"It therefore voted unanimously to increase the Bank of England’s holdings of UK government bonds and sterling non-financial investment-grade corporate bonds by £200 billion to a total of £645 billion, financed by the issuance of central bank reserves, and to reduce Bank Rate by 15 basis points to 0.1%."