The central bank confirmed in a press statement that the decision to expand the purchase of various bonds, which was supposed to expire next Friday, “was taken due to the significant re-pricing of British government debt in a market linked to the pension sector.”
He warned of potential “material risks” to the country’s financial stability with the continuation of negative fluctuations, stressing that he will now start the process of buying a wide range of bonds, coinciding with his continued purchase of long-term bonds within the original plan launched on September 28 last.
The British Central Bank had announced two weeks ago that purchases of long-term bonds will continue between September 28 and October 14 and will be carried out on “any scale necessary” in order to achieve the required results.
And the pound recorded late last month, a decline to 1.03 dollars, before returning its gains to the limits of 1.10 dollars, but investor confidence in the stability of the British economy has not returned to normal until today.
British economists believe that government bond yields, which mean the actual cost of government borrowing, especially for longer borrowing periods, have risen significantly over the past two weeks.
Experts pointed out that financial markets are still reacting negatively to the government’s announcement last month that tax cuts are the largest and sharpest in fifty years.
British Chancellor of the Exchequer, Quasi Quarting, had announced significant tax cuts amounting to about 45 billion pounds ($48 billion) with the aim of stimulating economic growth and attracting foreign investment, but the negative reaction prompted him to backtrack on some decisions, the most important of which was the abolition of the high-income tax, or what is known as the 45 tax. pence.
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