22 stunned reactions to the Tories sending the economy into free fall: "This is...bad"

22 stunned reactions to the Tories sending the economy into free fall: "This is...bad"
Liz Truss 'prepared to be unpopular' with plans to 'grow British economy'
Sky News

The Bank of England has said it will launch a temporary UK government bond-buying programme as an emergency move to stave off a “material risk to UK financial stability”.

The Bank of England said it will intervene in the bond market after a recent sell-off and surge in bond yields.

In a statement, the Bank said: “Were dysfunction in this market to continue or worsen, there would be a material risk to UK financial stability.

“This would lead to an unwarranted tightening of financing conditions and a reduction of the flow of credit to the real economy.

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

“To achieve this, the Bank will carry out temporary purchases of long-dated UK government bonds from September 28. The purpose of these purchases will be to restore orderly market conditions.

“The purchases will be carried out on whatever scale is necessary to effect this outcome. The operation will be fully indemnified by HM Treasury.”

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On Tuesday in International Monetary Fund gave a grim assessment of the current state of the UK economy, while there were also bizarre suggestions that the markets were moving in the way they were because they were worried about Keir Starmer becoming prime minister.

Reaction to the plummeting pound and the Bank of England's intervention is as you'd suspect, one of shock, awe and a bit of gallows humour.

Additional reporting by PA.

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