The British central bank took urgent measures today to stabilize the domestic financial market in order to avoid a crisis on a broader economic plan.
Previously, the government in London led by the new Prime Minister Liz Truss terrified investors with a program of tax cuts that would not be compensated from other sources, as a result of which the pound lost its value dramatically and the national debt increased.
The Bank of England warned that the collapse of confidence in the economy posed a "tangible risk to the financial stability of Great Britain", and the International Monetary Fund resorted to a rarely used measure - it called on the Group of Seven (G7) of the world's most developed economies to abandon national plans for tax cuts and additional borrowing to cover costs.
The British central bank announced that it will buy long-term government bonds in the next two weeks, and the measures are aimed at long-term government loans.
Tras has announced an economic stimulus program that includes a £45 billion tax cut plan with no spending restrictions.
The plan covers the protection of households and businessmen from the consequences of rising energy prices.
These measures have worried investors because of the possibility of increasing the national debt and ramping up inflation, which is already at an annual level of 9,9 percent - the highest in 40 years.
Following the announcement of the new measures, the British pound fell to a record low against the dollar on Monday.
Yields on ten-year government bonds have risen by 325 percent this year, which dramatically increases the cost of the government's efforts to borrow in order to implement its policies.
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