The Bank of England has said it will launch a temporary UK government bond-buying programme as an emergency move to stave off a 'material risk to UK financial stability'.
The Treasury has said the Government will continue to 'work closely' with the Bank of England after the move was announced amid the current market chaos. In a statement, the Bank said: "Were dysfunction in this market to continue or worsen, there would be a material risk to UK financial stability.
"This would lead to an unwarranted tightening of financing conditions and a reduction of the flow of credit to the real economy. In line with its financial stability objective, the Bank of England stands ready to restore market functioning and reduce any risks from contagion to credit conditions for UK households and businesses.
