The Bank of England says bond-buying help will end on Friday, despite pleas from investors to extend it.
The Bank of England boss says it will stop buying bonds to help pension funds this week despite pleas to continue.
The pound fell against the dollar to below $1.10 after Mr Bailey's surprisingly blunt statement which dashed investor hopes of the support being extended. And government borrowing costs remain close to the levels seen at the height of the market turmoil last month. However, a sharp fall in their value after the mini-budget forced pension funds to sell bonds, threatening to create a downward spiral in their prices as more were offloaded which left some funds close to collapse.
His insistence the support would end was no slip of the tongue with the governor going out of his way to say the City giants now had to arrange their affairs."I'm afraid this has to be done, for the sake of financial stability," he said.Earlier pensions industry body the Pensions and Lifetime Savings Association had warned against the help ending "too soon".
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