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The Guardian - UK
The Guardian - UK
Business
Richard Partington

Cliff edge looms for UK’s financial system

stormy sky over the Bank of England
Bank of England will only reluctantly ditch its plan to ease itself off QE. Photograph: Maxian/Getty Images/iStockphoto

Britain’s financial system is approaching a cliff edge. After stepping in to calm the market chaos that followed Kwasi Kwarteng’s mini-budget, the Bank of England has insisted it will close the £65bn emergency scheme used to smooth over the mess.

From Friday, the central bank plans to halt its rescue purchases of UK government bonds, in a market where funds managing the retirement savings of pensioners across the country still risk being dangerously burned.

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