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Bank of England takes fresh emergency motion because it warns UK economy ‘at material risk’ | Politics | News

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Governor Andrew Bailey announced emergency motion almost a fortnight ago as a consequence of a rapid sell-off in bonds. Nevertheless, further intervention was needed this morning after the motion didn’t successfully calm the markets.

The Bank said: “The start of this week has seen an additional significant repricing of UK Government debt, particularly index-linked gilts.

“Dysfunction on this market, and the prospect of self-reinforcing ‘fire sale’ dynamics pose a fabric risk to UK financial stability.”

It added that its latest efforts will “act as an additional backstop to revive orderly market conditions”.

The markets reacted negatively when Mr Kwarteng announced the Government’s tax-cutting plans on September 23 without publishing the Office of Budget Responsibility’s (OBR) independent growth forecasts.

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