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Sterling falls as Bank of England warns market support will end on Friday

Governor Andrew Bailey said pension funds have got three days left.

11 October 2022

The pound has fallen again after the Bank of England governor warned that its emergency support package for the markets would end on Friday.

Earlier the Bank intervened for the second time in as many days to prevent “fire sales” of pension fund assets, amid the continuing market turmoil in the wake of Chancellor Kwasi Kwarteng’s mini-budget.

But speaking later in Washington, governor Andrew Bailey warned there could be no further extension beyond the end of the week.

“My message to the (pension) funds involved – you’ve got three days left now. You have got to get this done.

“Part of the essence of a financial stability intervention is that it is clearly temporary.”

Following his remarks sterling fell more than a cent against the dollar to its lowest rate since September 29.

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