The Bank of England announced on Wednesday that it will intervene in the debt market, buying government bonds to “restore normal market conditions” at a time when British interest rates are through the roof.
“The bank will make purchases of long-term government bonds” starting this Wednesday, the Bank of England said in a statement, specifying that the “operation will be fully financed by the Treasury.”
In reaction, the interest rate on the 30-year debt, which at the beginning of the session had reached 1998 highs of 5.14%, fell to 4.73%.
Source: TSF
