The Bank of England intervened to calm the fraught conditions in UK debt markets by pledging to buy long-dated gilts and suspending plans to sell its existing holdings.
The FTSE 100 fell further under the 7000-point mark after closing under it for the first time in six months yesterday. High street stocks made notable declines, after data from the British Retail Consortium showed record shop price inflation, led by soaring food prices.
The pound was back under $1.07 after the International Monetary Fund called on the UK government to look again at its tax cut plans.
