Pound sterling Bailey Bank of England FTSE 100 bond yield gilts GDP UK economy

Following Andrew Bailey's announcement that the Bank of England will stop providing special assistance to the gilts market, markets have remained unsettled.

Mr. Bailey caused the pound to drop significantly.

As the Bank Governor reaffirmed that a £65 billion bond-buying programme that has shielded retirement systems from collapse will be discontinued at the end of the week, the value of the pound fell by 1.3 percent to under $1.10.

In terms of the dollar, the pound fell to its lowest level since September 28.

Mr. Bailey's position intensifies investor worries about hawkish policymakers.

As a result of a pessimistic IMF economic prediction, increasing prices, and uncertainty following Russia's invasion of Ukraine, US President Joe Biden said that a "slight" recession was a possibility.

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