Bank of England steps in to calm markets

Published

5 minutes ago

The Bank of England has announced that it will step in to calm markets after the government's tax-cutting plans sparked a fall in the pound and caused borrowing costs to surge.

The Bank said it would buy government bonds on a temporary basis to help "restore orderly market conditions".

The pound hit a record low on Monday following the chancellor's mini-budget last week.

Markets also warn interest rates could spike after borrowing costs jumped.