Bank of England warns risk of UK financial crisis hasn't gone away | CNN Business

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For the second time in two days, the Bank of England has been forced to offer extra support to UK markets still reeling from the government’s announcement last month that it would slash taxes and increase borrowing.

The central bank warned Tuesday that there was still a “material risk to UK financial stability” from a sharp-sell off in government bonds that has sent yields soaring, pushing up borrowing costs across the economy and forcing some pension funds to dump assets to raise cash. A slump in UK government bonds that promise to protect investors from inflation — known as index-linked gilts — was the latest source of risk, it said.

Under pressure from markets, the International Monetary Fund, ratings agencies, poll ratings and restive members of their own Conservative Party, Truss and Kwarteng have already had to backpedal fast. They’ve ditched plans to slash the top rate of income tax for people earning more than £150,000 a year, but that shaves only about £2 billion off the cost of the tax-cutting package. Kwarteng has also brought forward his full budget announcement by more than three weeks to Oct.

 

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'forced' by whom?

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Bank of England warns risk of UK financial crisis hasn't gone away | CNN BusinessFor the second time in two days, the Bank of England has been forced to offer extra support to UK markets still reeling from the government’s announcement last month that it would slash taxes and increase borrowing. This 'forced' by whom? StoppHazaraGenocide
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