The Bank of England (BoE), the central bank of the country, on Wednesday cut its main interest rate from 0.75 percent to 0.25 percent as part of a package of measures to cushion the impact of COVID-19.

At a special meeting which ended on Tuesday, the Monetary Policy Committee (MPC) voted unanimously to reduce the rate by 50 basis points to 0.25 percent, according to a statement from the bank, reports Xinhua.

The cut is expected to support business and consumer confidence during the epidemic, bolster the cash flows of businesses and households, reduce costs and improve the availability of finance.

"The Bank of England's role is to help UK businesses and households manage through an economic shock that could prove sharp and large, but should be temporary," the bank said, adding that "a comprehensive and timely package of measures" will help prevent a temporary disruption from causing longer-lasting economic harm.