Bank of England stepped in on Thursday to stabilise price of UK government bonds and avert a deeper crisis
Pension fund managers breathed a cautious sigh of relief on Thursday morning. After days of market turmoil, the Bank of England’s £65bn emergency intervention the day before had – at least temporarily – stabilised UK government bond prices, supported the pound, and halted a pension fund selloff that threatened to spark a deeper crisis across the City.
“After 35 years in the industry, I’d never seen anything like it,” Luke Hickmore, a fund manager at investment company Abrdn said. However, markets were now “a lot calmer”.