The Bank of England cut interest rates to 0.1% today, its second emergency rate cut in just over a week.

It also ramped up its bond-buying programme in a fresh attempt to shield Britain's economy from the coronavirus outbreak. 

The Bank of England's Monetary Policy Committee voted unanimously for the cut to the benchmark rate - which had been slashed to 0.25% on March 11.

It also approved a £200 billion increase in the central bank's bond-buying programme to £645 billion.

"Over recent days, and in common with a number of other advanced economy bond markets, conditions in the UK gilt market have deteriorated as investors have sought shorter-dated instruments that are closer substitutes for highly liquid central bank reserves," the Bank of Engand said. 

"As a consequence, UK and global financial conditions have tightened," it added.

Most of the extra debt the Bank of England will buy will be British government bonds, the bank said as it followed other central banks around the world in ramping up their stimulus efforts. 

The pound, which yesterday sank to a 35-year-low as investors rushed into US dollar assets, rallied 0.5% to the day's highs after the Bank of England's announcement. 

The purchases announced today would be completed as soon as "operationally possible, consistent with improved market functioning," the Bank of England said.

"The Bank will issue further guidance to the market in due course," it added.