The British pound has stabilized in Asian trading after plunging to a record low, as the Bank of England and the British government try to soothe markets nervous about a volatile U.K. economy. The Bank of England said it would buy long-term government bonds over the next two weeks to combat a recent slide in British financial assets. The bank’s actions are focused on long-term government debt, where yields have soared in recent days, pushing up government borrowing costs. “Were dysfunction in this market to continue or worsen, there would be a material risk to U.K. financial stability,″ the bank said in a statement. The British pound plunged to a record low against the U.S. dollar Monday following the government’s announcement, and yields on U.K. government debt soared.

Source: The Herald September 29, 2022 02:28 UTC