Central bank announces surprise plan to sell billions of pounds in government bonds back to the Treasury
Burnham’s talk of ‘breathing space’ at odds with reality of future rate rises
The Bank is shaking up its bond sales – why does it matter?
Business live – latest updates
The Bank of England has kept interest rates on hold as it warned a continuation of the bitter fighting in the Middle East could force it to raise borrowing costs amid mounting fears over inflation.
It also announced a surprise plan to sell billions of pounds in UK government bonds back to the Treasury to avoid fuelling turbulence in the gilt market, a decision that could have consequences for the public finances before next month’s budget.
