Bank of England announces emergency action to stabilise UK economy

The Bank of England has said it will further bolster its emergency bond-buying plan.

It warned an ongoing rout in the gilts market poses a ‘material risk to UK financial stability’.

This morning Deputy Prime Minister Therese Coffey insisted the UK’s public finances are in a ‘good state’ after the Institute for Fiscal Studies warned £60 billion spending cuts would be needed to get finances under control.

Ms Coffey denied that Chancellor Kwasi Kwarteng brought his medium-term fiscal plan forward because the markets were spooked.

She told Sky News: ‘I think he decided we’re in a good state and we’ll continue to discuss this across Government and with Parliament over the few weeks ahead.’

Ms Coffey was not aware of the Bank of England’s fresh action at the time she gave her interview.

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