Bank of England intervenes amid ‘serious concerns’ for pension funds – pounds live

I’ll turn briefly to Brexit…

The British government is ready for a “serious dialogue” on the Northern Ireland Protocol, said the Irish Foreign Secretary.

Simon Coveney said Westminster’s messages on the issue appear to have been toned down. British ministers have previously threatened to unilaterally suspend the deal in what Brussels said would be a breach of international law.

After meeting Northern Ireland Secretary Chris Heaton-Harris in Country Down, Mr Coveney said their discussion had focused on rebuilding partnerships.

Referring to the transcript, he said: “We know the obstacles, they’ve been there for too long.

“There are effectively new people in the relationships now.

“It is no coincidence that the new Prime Minister (Liz Truss) met President (Ursula) von der Leyen, President (Joe) Biden, the Taoiseach (Micheal Martin).

“I think the talks have been positive in terms of trying to find a reasonable way forward.

“From an EU perspective, they don’t want this issue to drag on.

“The last thing the EU wants is to take the UK government to court.”

A former Bank of England chief adviser said the idea that the government could produce growth over the next two years was “ridiculous”.

Charles Goodhart pointed out the current problems with the Gilts market and with mortgages times radio: “You can now say goodbye to growth until the general election.”

Liz Truss is accused of going into hiding.

Although she continues to post foreign policy updates on social media (see below), she has yet to comment publicly on the financial crisis sparked by her government’s policies.

For those with particularly long memories, there are now horrific echoes of 1976 reverberating in our minds. Not the long, hot summer, unfortunately, but the great IMF crisis that put the early days of James Callaghan’s Labor government to the testwrites Sean O’Grady.

Liz Truss has been accused of going into hiding while her wasted tax budget caused economic turmoil, forcing the Bank of England to step in to prevent a crisis in Britain’s major pension funds.

The bank started an estimated £65 billion in bond purchases amid what a Treasury source described The Independent as “serious concerns about the short-term financial stability of some of the UK’s large pension funds”.

The current financial crisis is “by far the worst unforced economic policy mistake of my life,” said the CEO of the Resolution Foundation.

Torsten Bell, whose think tank aims to improve the lives of low-income people, said the destruction unleashed by Kwasi Kwarteng’s mini-budget on Friday was “difficult to understand”.

The Government will soon have to issue another financial report, a senior Tory politician has said.

As the economic fallout from the mini-budget continues to be felt, Sir Roger Gale said BBC News: “I don’t think we can wait until November which is the current intent as I understand it.

“I think yes, we do indeed need an explanation in a very short space of time to calm the nerves, calm the market and set out the business plan very clearly so that everyone properly understands where we are going.”

The Thanet MP added that the “ambiguity” of the mini-budget has “caused the run on the pound”.

Businesses and investors around the world “wonder what on earth is going on in the UK,” said a Crossbench colleague.

That’s what former Treasury Secretary Lord O’Neill said BBC radio 4: “This is a space, I think, for government to seriously think about what on earth they’re really trying to do, and … this idea that you can magically quadruple productivity with a tiny inversion of corporate tax policy is.” At the end of the day, it’s at the heart of why investors and businesses around the world, let alone here at home, are wondering what on earth is going on in the UK.”

The government has tried to deny responsibility for Britain’s financial woes, saying all major economies are suffering from Vladimir Putin’s war in Ukraine.

Liz Truss and Chancellor Kwasi Kwarteng have been widely accused of scaring off investors with their plans to cut taxes on high earners and increase government borrowing.

After Mr. Kwarteng presented his mini-budget on Friday, the pound plummeted to hit an all-time low against the dollar on Monday.