Why is the Bank of England buying government debt?

[ad_1]

The Bank of England has announced it would buy government bonds on a temporary basis to help “restore orderly market conditions”.

It pledged to buy £65bn of the bonds after Friday’s mini-budget sparked turmoil on financial markets and the pound plunged. Investors had demanded a much higher return for investing in the government bonds, usually a stable investment, causing some to halve in value.

The BBC’s Economics Editor Faisal Islam explains the move.

[ad_2]

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *