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BOE<- Bank Emergency move driven by pension fears

The Bank of England stepped in to calm markets after some types of pension
funds were at risk of collapse.

It said it would buy as many government bonds as necessary after Friday's mini-budget sparked turmoil on financial markets and the pound plunged.

Investors had demanded a much higher return for investing in government bonds, causing some to halve in value.

Pension funds, which invest in bonds, were forced to start selling sparking fears of a fresh market downturn.

The Bank said its decision to buy government bonds at an "urgent pace" was driven by concern over "a material risk to UK financial stability."

The government borrows money to fund its spending plans by selling bonds, or "gilts", to investors such as pension funds and big banks on international markets.

https://www.bbc.com/news/business-63065415?at_medium=RSS&at_campaign=KARANGA