[Epoch Times, September 28, 2022]On September 28, the Bank of England (Bank of England), in order to stabilize the market order, suddenly decided to enter the market to buy long-term British bonds, in order to reduce the rapidly risingDebt yield。
The bank pointed to the need to prevent “enormous risks to the UK’s financial stability”, to get the economy financed and ready to restore market order and prevent credit risks from spreading to households and businesses.
Meanwhile, the Bank of England said,buy bondsThe scale will follow the market demand until the desired effect is achieved. 10 Year Government BondDebt yieldAfter exceeding the 4.5% level this week, it fell back to 4.1%. A week ago, the bond yield was only at 3.4%.
However, the UK government launched a $45 billion on FridayGBPTax cuts to stimulate the economy, paid for by a £72bn bond sale over the next year. The market reaction was that traders knew the government needed loans and pushed up construction costs, and the pound hit rock bottom. The International Monetary Fund (IMF) has warned Britain to avoid debt financing.
The Bank of England said on Monday that it would not go “against the revival measures”, leaving everything to be planned on November 3. Different from the authorities, the bank is trying to control double-digit inflation by suppressing inflation. Therefore, the market expects interest rates to rise by 0.1% in November.
The bond purchases are expected to last until Oct. 14, “and exit in an orderly manner, provided market risks are contained.” @
Responsible editor: Wu Hao#