The decisions taken by former British Prime Minister Liz Truss put the country on the brink of a “financial Armageddon”, said the head of the Bank of England, Andrew Bailey. He also stressed that the financial market of the United Kingdom, after some steps taken by the Truss administration, could collapse within a few hours.
The bank, according to Bailey, was concerned that the situation was getting out of control. Therefore, the financial institution began buying government bonds. A total of about £19.3 billion was spent on this, informs Sky News on Friday, November 4th.
“At the moment we intervened, I can tell you that we were receiving messages from the market that it was about hours. It was a real threat to financial stability,” said Andrew Bailey.
Truss announced her resignation on October 20 after the failure of her economic policies and amid growing discontent from her Conservative Party colleagues. She was in power for just 45 days, the shortest time in recent history as a British prime minister before he announced his resignation.
New Prime Minister of the United Kingdom was chosen by Rishi Sunakwho took office on 25 October.