Pension fund panic led to Bank of England's emergency intervention: Here's what you need to know
The Bank of England on Wednesday launched a historic intervention in the U.K. bond market in order to shore up financial stability, with markets in disarray following the new government's fiscal policy announcements. Bloomberg | Bloomberg | Getty Images LONDON – The Bank of England launched a historic intervention to stabilize the U.K. economy, announcing a two-week purchase program for long-dated bonds and delaying its planned gilt sales until the end of October. The move came after a massive sell-off in U.K. government bonds — known as "gilts" — following the new government's fiscal policy announcements on Friday. The policies included large swathes of unfunded tax cuts that have drawn global criticism, and also saw the pound fall to an all-time low against the dollar on Monday. related investing news El-Erian says Bank of England's latest rescue move shows we are still in central bank 'la-la land' John Melloy a day ago The decision was taken by the ...