‘Essential’ intervention from the Bank
Chief economic adviser at the Centre for Economics and Business Research Vicky Pryce revealed that the Bank of Englands move was “essential”.
Speaking to Sky News, the economist said: “It was a very essential move, and we may see more,” she said.
“The interesting thing is that yields had been going up very significantly and there wasn’t any back-up for it.”
Pryce also claimed that the Bank may choose to keep doing this despite having a cut off in place on the 14th October.
She said: “It’s going to be buying unlimited amounts of bonds in the market to bring those yields down.
“The bank said it will then revert back to where it was, which is to start selling bonds in the market.
“I just don’t think it is going to do that. We are in a crisis situation and what they’ve done is put a temporary sticky plaster on it.
“They’re going to have to do an awful lot more of that buying to come.”
