The Bank of England will buy bonds to stabilize the markets | Photo credit: Shutterstock
LONDON, Sept 28 (Reuters) – The Bank of England (BoE) said on Wednesday it would buy as many British government bonds as needed by October 14 to stabilize financial markets and postponed the start of its securities sales on the markets, initially scheduled for next week.
“Should the dysfunctions of this market continue or worsen, it would pose a significant risk to the financial stability of the UK,” the central bank said.
The pound briefly pared its losses against the dollar after the announcements but as of 10:30 GMT it was down 0.61% at $1.0671.
(Report David Milliken and Harry Robertson; French version Claude Chendjou, edited by Marc Angrand)