Bank of England boss tells investors pensions help must end

The boss of the Bank of England has said a bond-buying scheme to stabilise pension funds must end on Friday, despite pleas to extend it.

The scheme must end for the sake of UK financial stability, Andrew Bailey told BBC News.

He said that managers have got to make sure that their funds are resilient.

Earlier the Bank of England made a fresh bond-buying move to try to calm markets.

Mr Bailey told the BBC on Friday: “We are doing everything to preserve financial stability, you have my assurance on that.”

But he said pension funds have “an important task” to ensure they are resilient.

“I’m afraid this has to be done, for the sake of financial stability,” he said.

Earlier, he had told fund managers: “You’ve got three days left now. You’ve got to get this done.”

The pound dropped sharply against the dollar to below $1.10 after Mr Bailey’s statement.

After the tax cuts were announced in September, sterling fell to a record low of $1.03, but then regained ground while remaining volatile….

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This article was written by and originally published on www.bbc.co.uk