The UK’s Crisis Is Threatening the Global Inflation Fight
Financial woes are reverberating far beyond the country’s borders. Now, the turmoil may change how central banks around the world choose to deal with inflation.
Crisis of confidence: Kwasi Kwarteng, Liz Truss and Andrew Bailey.
Photo Illustration: Bloomberg (3)
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The deadline is almost here. Britain’s central bank has dug in its heels and insisted that its rescue mission for the nation’s pension system, and for its huge “gilt-edged” bond market, is about to end. Friday’s purchase of gilts, Bank of England Governor Andrew Bailey insisted in forthright terms earlier this week, will be its last. From now on, the pension funds will be on their own. It’s still not clear how many people believe him.