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The Bank of England has announced it will be carrying out “temporary purchases of long-dated UK government bonds” in a desperate attempt to stabilise the UK economy after Kwasi Kwarteng’s mini-budget announcement last week sent the value of the pound plummeting.
The Bank warned that UK financial assets were facing “significant repricing”, adding that if this were allowed to continue, there was a “material risk to UK financial stability”.
They specified that the purpose of the bond purchases was to “restore orderly market conditions”, adding that they will be carried out “on whatever scale is necessary to effect this outcome”.
The auctions are set to take place from today until October 14.
The bond-buying scheme will be funded by the bank’s reserves.
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