INSUBCONTINENT EXCLUSIVE:
(Reuters) - The Bank of England sought to quell a fire-storm in the British bond market, saying on Wednesday it would buy as much government
with verbal interventions over the previous two days, the BoE announced an emergency move that it said would prevent the turmoil in markets
government bond yields.The Treasury said it would fully indemnify the operations.Sterling was down 0.7% at $1.065, having dropped to a
session low of $1.0618.The BoE said it was keeping its goal to reduce its 838 billion pounds ($892 billion) of gilt holdings by 80 billion
pounds over the next year, but would postpone the start of sales - due to begin next week - because of the market conditions.Earlier the
finance minister Kwasi Kwarteng on Friday in a move that he said would ignite economic growth.The rare intervention about a G7 country from
the IMF, the global lender of last resort, underscored the severity of the situation facing Britain, with the value of the pound and British
bonds collapsing since Friday.The Bank of England said on Monday it would not hesitate to raise interest rates and was monitoring markets
November.Despite those comments, the market had remained in turmoil.Earlier on Wednesday 30-year British government bond yields rose above
5% for the first time since 2002
Following the BoE statement, 30-year yields dropped more than 50 basis points on the day.The latest crisis to hit the British state was
Thatcherite and Reaganomics doctrines of the 1980s.With the cost of British borrowing soaring, mortgage lenders pulled hundreds of products
and anecdotal reports said people were struggling to get through to lenders to either complete or change mortgage deals.That would mark a
major shock in a country where rising house prices have for years conveyed a sense of overall affluence, and where home buyers have got used
to more than a decade of rock-bottom interest rates.The IMF said the proposals, which sent the pound to an all-time low of $1.0327 on
Monday, would add to a crisis of credibility after the government cut taxes and hiked borrowing just as the Bank of England lifts interest
symbolic importance in British politics: its bailout in 1976 following a balance-of-payments crisis forced huge spending cuts and has long
risking structurally higher funding costs that could weaken the economy.Kwarteng, an economic historian who was business minister for two
years, has responded to the criticism by insisting that tax cuts for the wealthy alongside support for energy prices are the only way to
reignite economic growth.The IMF said his fiscal plan on Nov
spokesperson said.With anxiety growing in the financial sector and among lawmakers in the governing Conservative Party, Kwarteng has spoken
to bosses in the banking, insurance and financial sectors and will meet with more banking bosses on Wednesday.In his remarks on Tuesday, BoE
Monetary Policy Forum.Source: Reuters--Agencies
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