andrew bailey governor of the bank of england has said the global economic outlook has deteriorated materially after surging commodity prices pushed up inflation around the world the bank of england will suspend the planned start of its gilt selling next week and begin temporarily buying longdated bonds in order to calm the market chaos unleashed by the new governments socalled minibudget uk gilt yields are on course for their sharpest monthly rise since at least 1957 as investors flee british fixed income markets following the new fiscal policy announcements the measures included large swathes of unfunded tax cuts that have drawn global criticism including from the imf in a statement wednesday the central bank said it was monitoring the significant repricing of uk and global assets in recent days which has hit longdated uk government debt particularly hard were dysfunction in this market to continue or worsen there would be a material risk to uk financial stability this would lead to an unwarranted tightening of financing conditions and a reduction of the flow of credit to the real economy the bank of england said in line with its financial stability objective the bank of england stands ready to restore market functioning and reduce any risks from contagion to credit conditions for uk households and businesses as of wednesday the bank will begin temporary purchases of longdated uk government bonds in order to restore orderly market conditions and said these will be carried out on whatever scale necessary to soothe markets the purchases will be funded by the uk treasury this is a breaking news story please check back later for more