Pension funds 'would have collapsed today' if emergency measures had not been taken by the Bank of England, it has been claimed. The Bank of England was forced to step in with a £60billion buy-up of government debt to stop a mass collapse of pension funds.
The move to calm the chaos in financial markets follows turmoil for the pound and UK government bonds caused by the Chancellor’s tax-cutting mini-budget. The Bank announced it was stepping in to buy Government bonds – known as gilts – at an 'urgent pace' to try and bring the surging yields under control as they spiralled higher, sending UK public borrowing costs soaring.
It said it would buy bonds 'on whatever scale is necessary', but has so far resisted calls to deliver an emergency interest rate rise after the pound fell to an all-time record low against the US dollar on Monday.
