'No U-turn on tax cutting budget': Chancellor stands firm despite Bank's £60billion move to stop pension collapse
In an unprecedented move, the Bank of England stepped in to buy government debt hours in a bid to prevent soaring interest rates leading to the collapse of pension funds.
The Bank's action is designed to add more demand for gilts and and pump up their prices - which in turn brings down the interest rates. "And that's impacting every major economy and just the same, every major economy, you're seeing interest rates going up as well.' "We can get back to that, but we are only going to do so, with a programme of supply side reform that was embedded in the growth plan."
The former chancellor told Tonight with Andrew Marr: "I've never known a budget to cause a financial crisis like this, I think the Government and the Bank of England are still going to have to act to calm it down and get us back to normality before we work out how we're going to recover.
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