Cliff edge looms for UK’s financial system
by Richard Partington from on (#64NDE)
BoE's move to end bond buying is a big gamble given the magnitude of the bind Britain is in
- Borrowing costs rise after BoE insists it will end bond-buying
- The Bank of England governor plans to stick - but it is a gamble
Britain's financial system is approaching a cliff edge. After stepping in to calm the market chaos that followed Kwasi Kwarteng's mini-budget, the Bank of England has insisted it will close the 65bn emergency scheme used to smooth over the mess.
From Friday, the central bank plans to halt its rescue purchases of UK government bonds, in a market where funds managing the retirement savings of pensioners across the country still risk being dangerously burned.
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