Bank of England cautions of lasting UK debt| MENAFN.COM

Saturday, 03 December 2022 01:07 GMT

Bank of England cautions of lasting UK debt


(MENAFN) Stating that repricing influenced the UK's long-term administration debt, the Bank of England (BoE) advised that if this "dysfunction" lasts or deteriorates, it might trigger a major danger to the nation's monetary steadiness.

"This would lead to an unwarranted tightening of financing conditions and a reduction of the flow of credit to the real economy," the bank as well underlined.

The bank will start temporary acquisitions of this debt from Wednesday to bring back market conditions.

"The purchases will be carried out on whatever scale is necessary to effect this outcome," it went on to state.

The bank, which increased its policy rate by 215 basis points since December 2021 to 2.25 percent, declared its monetary policy committee will not have a doubt to change the policy rate as much as necessary to fight inflation to the aim level of 2 percent.

The nation's yearly inflation rate reached almost 10 percent now.

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