Pound LIVE: GBP rises above pre-mini budget level ahead of Truss tightening talks with OBR | City & Business | Finance

The Bank of England plans to buy £5bn worth of bonds each day, completing a £65bn program to rescue the faltering pound.

The pound has suffered in the week since Chancellor Kwasi Kwarteng presented his September ‘growth plan’.

The currency fell to an all-time low of $1.035 earlier this week before bouncing back to $1.17 on the dollar. The rapidly developing crisis demanded the intervention of the Bank of England.

The Bank of England stepped in after a “significant revaluation of UK and global financial assets”.

Officials warned that a continuation of a marked “dysfunction” would ultimately impact the UK’s financial stability and force “an unwarranted tightening of funding conditions and a reduction in the flow of credit to the real economy”.

The central bank launched a £65bn bond-buying program to prevent the crisis from dismantling UK pensions.

The bank will buy £5 billion worth of bonds every day for 13 weekdays.

In an announcement, the bank said: “If the dysfunction of this market continues or worsens, there would be a significant risk to the financial stability of the UK.

“This would lead to an unwarranted tightening of financing conditions and a reduction in the flow of credit to the real economy,” the Bank of England said.

“In line with its objective of financial stability, the Bank of England stands ready to restore market functioning and reduce any risk of contagion to credit conditions for UK households and businesses.”

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