Bank of England steps in to calm markets

September 29, 2022 5:21 am

[Source: BBC]

The Bank of England has said it will step in to calm markets after the government’s tax-cutting plans sparked a fall in the pound and caused borrowing costs to surge.

It warned that if the market volatility continued there would be a “material risk to UK financial stability”.

The Bank will start buying government bonds at an “urgent pace” to help restore “orderly market conditions”.

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The pound tumbled to $1.0586 after the news, down 1.4% against the dollar.