Bank of England forced to buy inflation-linked bonds amid 'risk to UK financial stability'

The IMF's chief economist said Kwasi Kwarteng's push for growth and the Bank of England's actions were akin to two people trying to steer a car in different directions.

The Bank of England has postponed the start of its sales of bonds until October 31. Picture: Yui Mok/PA Wire

The Bank of England sought again to stem a sharp sell-off in Britain's government bond markets, expanding its emergency buying to inflation-linked debt.

Citing a "material risk" to financial stability after pension firms were hit by the turmoil, the Bank of England split its programme to buy up to £10bn (€11.4bn) of British bonds each day to include up to £5bn of index-linked bonds.