Pound falls after BoE chief rules out extending help to stabilise markets
The pound sank against the dollar early on Wednesday after the Bank of England governor confirmed the bank won't extend an emergency debt-buying plan introduced last month to stabilise financial markets.
Andrew Bailey said the programme will end on Friday as scheduled.
The pound fell by almost 1 per cent to just below USD 1.10 after Bailey spoke, before rallying slightly. After the government's September mini-budget the currency hit a record low of USD 1.03.
My message to the (pension) funds involved you've got three days left now. You have got to get this done, he said. Part of the essence of a financial stability intervention is that it is clearly temporary.
The central bank stepped in after the British government on September 23 announced plans for 45 billion pounds (USD 50 billion) in tax cuts without saying how it would pay for them. The announcement spooked financial markets and sent the pound plunging to a record low against the dollar.
The Bank of England intervened to pr