‘Dysfunction in this market’: Bank of England intervenes over ‘material risk’ to UK economy

The Bank of England has taken a dramatic step to calm a crisis in government bond markets, suspending its program to sell bonds and instead committing to buy them to counter “dysfunctional markets”.

“Were dysfunction in this market to continue or worsen, there would be a material risk to UK financial stability,” it said. The International Monetary Fund and ratings agency Moody’s ramped up pressure on Britain to reverse a new economic strategy that was roiling financial markets for a fourth day on Wednesday and has sparked alarm about the UK housing market.

With the cost of borrowing soaring, mortgage lenders pulled hundreds of products, while several media outlets have published anecdotal reports that people were struggling to get through to lenders to either complete or change mortgage deals.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

‘Dysfunction in this market’: Bank of England intervenes over ‘material risk’ to UK economyThe Bank of England has taken a dramatic step to calm a crisis in government bond markets, suspending its program to sell bonds and instead committing to buy them to counter “dysfunctional markets” So more QE at first sign of trouble. Will they ever learn?
Source: smh - 🏆 6. / 80 Read more »

Bank of England fails to ease Britain’s market ructionsThe UK’s central bank said it wouldn’t rush through an emergency interest-rate increase, prompting another bond and sterling sell-off.
Source: FinancialReview - 🏆 2. / 90 Read more »