28 September 2022
If you are covering the Bank of England decision to intervene in the gilt market, please see the following comment from Stuart Clark, portfolio manager at Quilter:
"We have just seen the Bank of England (BoE) intervene in the gilt market today to try and calm the situation and this should provide some reassurance to the market. However, the BoE is trying to slow down all the plates spinning in the air without letting any fall and the Treasury during the “mini-budget” on Friday threw a bunch of marbles onto the floor to make it more challenging.
"By instigating targeted, controlled and (apparently) time limited intervention the BoE will try to support the economy in order to avoid a more expensive bailout if conditions continue to materially deteriorate while maintaining independence. Above all we need to see the government regain credibility with domestic and international investors and explain how they plan to pay for these tax cuts other than just through borrowing."
