Wow, the BoE is going back to QE buying bonds again to try and restore stability at the risk of hyperinflation, they have no choice. Inflation has won.
UK 10-Year Gilt Yield Eases on BoE Announcement The yield on Britain’s ten-year Gilt eased below 4.4%, after the Bank of England said will carry out temporary purchases of long-dated UK government bonds from 28 September in order to restore orderly market conditions. Also, the central bank postponed the start of its gilt sale programme, due to begin next week, because of the market conditions. The 10-year note topped 4.5% for the first time since November 2008, as panic selling intensified after the government announced sweeping tax cuts last Friday. This week, Kwasi Kwarteng showed optimism in its economic strategy, saying he remains committed to bringing debt under control and reiterated that his £45 bn of tax cuts would boost growth. Meanwhile, BoE Huw Pill suggested the central bank may hike rates significantly at the next policy meeting in response to finance minister Kwasi Kwarteng's huge tax cuts. He added the central bank should wait until the scheduled November meeting to act, in line with the BoE statement on Monday.
