Bank of England intervenes again as ‘disastrous’ Tory budget plunges economy into crisis
Chancellor of the Exchequer, Kwasi Kwarteng delivers his keynote speech to party members at the annual Conservative Party conference in Birmingham. Picture date: Monday October 3, 2022.
PRESSURE is mounting on the Tories to reverse their “disastrous” Budget after the Bank of England was forced to make another emergency intervention to calm the markets today.
Amid warnings of a “material risk to UK financial stability,” the central bank stepped in for a second day running to buy more government bonds in a bid to prevent a sell-off that could put some pension funds at risk of collapse.
The move has been made as a result of “further significant repricing of UK government debt” in one pension-linked market, the bank said, prompting it to extend its operations to buy up index gilts, a government bond with interest payments in line with inflation.
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