The Bank of England on Tuesday expanded its emergency effort to quash upheaval on financial markets unleashed by the government’s plan to slash taxes, saying fluctuations in bond prices posed a “material risk” to Britain’s fiscal stability.
The U.K. central bank said it will now buy inflation-linked securities — which offer protection from inflation — as well as conventional government bonds as it seeks to “restore orderly conditions” in the market. Purchases will total up to 10 billion pounds ($11 billion) a day split evenly between both types of bonds, and the program will end Friday as originally planned, the bank said in a statement.
