Today, the Bank of England pressed the panic button once more and announced it will bolster its emergency bond-buying programme, claiming a continuous sell-off in the gilts market poses a “substantial threat” to the financial stability of the United Kingdom.
After taking action in September in response to Chancellor Kwasi Kwarteng’s mini-Budget, which threw the gilt market into a tailspin and wrecked havoc on final salary pension funds, officials have taken action again this morning.
Therese Coffey, Deputy Prime Minister, appeared on television minutes after the Bank of England’s announcement and stated that she was unaware of the Bank’s new action.
It occurred as the Institute for Fiscal Studies warned of £60 billion in spending cuts to rein in the United Kingdom’s budget.
Despite the return of the Old Lady of Threadneedle Street this morning, Therese Coffey has declared that the public finances of the United Kingdom are in a “excellent position.”
Officials at the Bank of England have taken action again this morning after acting in September in response to Chancellor Kwasi Kwarteng’s mini-Budget, which threw the gilt market into a tailspin and wrecked havoc on final salary pension funds.
Ms. Coffey refuted the notion that Chancellor Kwasi Kwarteng advanced his medium-term fiscal plan due to jittery markets.
She told Sky News, “I believe he concluded that we’re in a good situation, and we’ll continue to debate this with the government and Parliament in the coming weeks.”
Ms. Coffey was unaware of the Bank of England’s latest move to bolster its emergency bond-buying programme as it warned a continuing sell-off in the gilts market poses a “substantial threat” to the financial stability of the United Kingdom.
Yesterday, Liz Truss prevented Kwasi Kwarteng from appointing an outsider as the Treasury’s senior officer.
In an effort to shake up the department’s ‘orthodox’ thinking, the Chancellor had planned to appoint the high-achieving civil servant Antonia Romeo as permanent secretary.
Last month, on his first day in office, Mr. Kwarteng fired the previous governor, Sir Tom Scholar, in an effort to encourage the Treasury to take a more aggressive approach to growth.
According to Whitehall insiders, however, the Prime Minister vetoed Mrs. Romeo’s appointment. James Bowler, a civil service veteran and fiscal conservative, was appointed instead yesterday.
Cat Little and Beth Russell were named as Mr. Bowler’s deputy in an apparent effort to convince the financial markets of fiscal sustainability.
Yesterday, No. 10 reiterated that the nomination of Mr. Bowler was a “shared decision” between the Prime Minister and Chancellor.