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The Guardian - UK
The Guardian - UK
Business
Larry Elliott, Pippa Crerar and Richard Partington

Bank of England in £65bn scramble to avert financial crisis

statue of the Duke of Wellington set against the facade of the Bank of England in the financial City of London district
City sources said the surprise move from Threadneedle Street was needed to halt a ‘doom loop’ in the bond markets. Photograph: Maja Smiejkowska/Reuters

The Bank of England has been forced into emergency action to halt a run on Britain’s pension funds after the impact of Kwasi Kwarteng’s ill-received mini budget prompted fears of a 2008-style financial crisis.

Threadneedle Street said the fallout from a dramatic rise in government borrowing costs since the chancellor’s statement had left it with no choice but to intervene to protect the UK’s financial system.

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