Analysis: BoE’s move to end bond buying is a big gamble given the magnitude of the bind Britain is in
- Borrowing costs rise after BoE insists it will end bond-buying
- The Bank of England governor plans to stick – but it is a gamble
Britain’s financial system is approaching a cliff edge. After stepping in to calm the market chaos that followed Kwasi Kwarteng’s mini budget, the Bank of England has insisted it will close the £65bn emergency scheme used to smooth over the mess.
From Friday, the central bank plans to halt its rescue purchases of UK government bonds, in a market where funds managing the retirement savings of pensioners across the country still risk being dangerously burned.
