UK market woes threaten economic and political crisis
The UK continued to try to avoid a financial and economic crisis on Wednesday as the country’s central bank made emergency purchases of government bonds to stabilize a spiraling debt market, adding a pressure on the government of the new Prime Minister. Liz Truss.
The central bank’s surprise decision to spend £1tn to buy UK government debt spurred a rally in the bond market and helped the beleaguered pound gain marginally against the US dollar, although it is still down against the euro. But the intervention – to avert a looming pensions crisis – underscored the risks that continued market turbulence poses to Britain’s financial system and economy.