UK Business

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Only a U-turn by the government or the Bank of England will calm UK financial markets

Written by Campbell Leith, Professor of Macroeconomics, University of Glasgow

The Bank of England has promised to take action to calm the financial market mayhem that has followed the announcement of major tax cuts by the UK government.

The Bank plans to temporarily buy whatever quantity of long-term debt is required to stabilise the cost of government borrowing, which has skyrocketed in response to Chancellor Kwasi...

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