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Podcast: Beyond Currency
Episode: 12 October 2022 - Truss bows to pressure over benefits
Description: Bank of England Governor Andrew Bailey spoke yesterday of the turmoil that the Government's new policies have brought to the gilts market and confirmed that additional support provided by the Central Bank must end this Friday.
The fear that pension funds will begin a fire sale of UK government assets, driving long term interest rates higher, could complete the total breakdown of the market’s confidence in the Treasury.
The Governor went on to say that any intervention in markets is simply to stabilize the situation, and market users cannot become reliant on official support. Therefore, any action taken by th...