Bank of England intervention: the impact on pensions
28th September 2022 16:48
by Rebecca O'Connor from interactive investor
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interactive investor's head of pensions and savings comments on today's move by the central bank.
Commenting on the Bank of England's intervention, Becky O'Connor, Head of Pensions and Savings, interactive investor, says: “The move from the Bank of England was in part to support defined benefit pension schemes that have been under significant pressure to generate cash quickly, risking a vicious cycle where they would have had to sell more gilts, pushing up yields further.
“It’s another alarming unintended consequence of the mini-budget. While it shouldn’t worry pension savers unduly, it does show how economic shockwaves can damage financial stability of many parts of the market that sit behind the financial products and services we all rely on.”
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