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Evening Standard
Evening Standard
World
Seren Morris

What is a government bond? The Bank of England emergency intervention explained

The Bank of England will buy bonds from the Government as an emergency measure

(Picture: Daniel Leal/AFP via Getty Images)

The Bank of England has launched an emergency UK government bond-buying programme following the fallout of Chancellor Kwasi Kwarteng’s mini-budget.

As the pound fell to a record low against the dollar, lenders temporarily withdrew their mortgage products and economists warned that UK interest rates could reach six per cent.

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