Britain: The central bank warns of risks to the country's financial stability

29 September, 2022
Share with a friend

Britain: The central bank warns of risks to the country's financial stability

The Bank of England announced emergency action to stem the crisis in government debt markets, suspending its program to sell government treasury bills and pledging instead to buy long-term bonds.


The central bank warned of "material risks to the UK's financial stability, from the turmoil in the UK government bond market that followed the tax cuts and the borrowing scheme put in place by Chancellor of the Exchequer Kwasi Quarting".


In its statement, the bank also raised the possibility of tightening financing conditions and reducing the flow of credit to the real economy, the Financial Times reported.


UK government bond markets rebounded after the announcement, but the pound was down 1.6 percent against the dollar by midday in London to $1,055.


Share with a friend