Bank of England steps in again to bolster bond-buying plan after mini-Budget chaos
11 October 2022, 07:49 | Updated: 11 October 2022, 08:42
The Bank of England has said it will further bolster its emergency bond-buying plan as it warned an ongoing rout in the gilts market poses a "material risk to UK financial stability".
Deputy Prime Minister Therese Coffey has insisted people’s pensions and the UK’s public finances are in a "good state" this morning.
She said today: "I'm absolutely confident pensions are safe, the Bank of England is independent and undertaking its role in trying to bring some stability, which it had done.”
Ms Coffey denied that Chancellor Kwasi Kwarteng brought his medium-term fiscal plan forward to October 31 because of market jitters.
The Institute for Fiscal Studies warned of £60 billion spending cuts to get finances under control.
After the government tanked financial markets with its mini-budget, the Bank was previously forced to step in to stem the turmoil.
It previously announced it would purchase up to £65bn of long-dated government bonds to prop up the market.
The Bank is now having to buy index-linked gilts.
Shadow chief secretary to the Treasury Pat McFadden said: "That the Bank of England has been forced to step in for a second day running to reassure markets shows the Government's approach is not working, and creates renewed pressure for the Chancellor to reverse his Budget.
"This is a Tory crisis made in Downing Street, being paid for by working people.
"They have lost all credibility and control and they must respect our nation's independent institutions, go back to the drawing board and reverse this damaging Budget."
