Pound plummets again as Bank of England boss insists he will not extend emergency support

The pound has plummeted again after Bank of England boss Andrew Bailey insisted he will not extend emergency support for pension funds.

High-street banks called in for 'crisis talks' with Chancellor amid warning of ‘eye-watering’ mortgage increases

But Mr Bailey stressed that the programme was part of financial stability operations, not a monetary policy tool, and had to be temporary as it risked clashing with its obligations to control inflation. Pension funds, which are big holders of UK government debt and index-linked bonds, suffered sharp falls in bond prices after the mini-budget, forcing many private pension funds to try to raise extra cash by selling bonds.

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