The Bank of England on Tuesday unveiled yet more measures aimed at calming markets rocked by a UK budget as it warned over risks to the nation's financial stability.
The week had already seen action taken by the BoE and UK government aimed at bringing calm to bond markets in particular as state borrowing soars.
In a statement, the BoE said the latest action would"act as a further backstop to restore orderly market conditions". Tuesday's intervention by the BoE resulted in a small drop in yields, while the pound steadied versus the dollar. Wages, however, continue to be eroded by decades-high inflation that threatens to send Britain into recession.
It comes after Kwarteng was already forced to axe a tax cut for the richest earners, in the face of outrage as millions of Britons face a cost-of-living crisis with UK inflation around 10 percent.Britain meanwhile faces"big and painful" cuts in public spending to fix state finances should it decide against more U-turns over tax cuts, a leading think tank warned Tuesday.
The budget was widely criticised, including by the International Monetary Fund, over fears that government debt would balloon to pay for the tax cuts, including on salaries of all UK workers.
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