# Bank of England moves to calm bond market rout after tax cut storm

> Kwasi Kwarteng outlined a plan for tax cuts alongside an energy bill bailout, funded by a large increase in government borrowing. UK mortgage markets have frozen, pension funds have sold gilts, and corporate borrowing costs have jumped.

- Date: 2022-09-28 · published 2022-09-28T12:00:00.000Z
- Category: macro · region UK · magnitude medium
- Page: https://feedsoft.ai/events/39828-bank-of-england-moves-to-calm-bond-market-rout-after-tax-cut-storm
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

Gilt and sterling turmoil is a macro financial shock that can strengthen the dollar and weigh on dollar-denominated commodity demand, with broad risk-off pressure on feed-related prices.

## Read by commodity

- DXY: bullish ▲
- GBPUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-09-26 | [Bank of England 'will not hesitate' to act as it monitors market turmoil \| Reuters](https://feedsoft.ai/events/39831-bank-of-england-will-not-hesitate-to-act-as-it-monitors-market-turmoil-reuters.md) | +0.2% | +0.6% |
| DXY | 2022-09-28 | [Bank of England intervenes in market to halt economic crisis \| PBS News](https://feedsoft.ai/events/39832-bank-of-england-intervenes-in-market-to-halt-economic-crisis-pbs-news.md) | -1.8% | -1.5% |
| DXY | 2022-09-26 | [Bank of England (BOE) Won’t Hesitate to Change Rates After Pound (GBP USD) Falls - Bloomberg](https://feedsoft.ai/events/39834-bank-of-england-boe-won-t-hesitate-to-change-rates-after-pound-gbp-usd-falls.md) | +0.2% | +0.6% |
| DXY | 2023-09-21 | [Reactions: Bank of England bashes pound after halting rate rises](https://feedsoft.ai/events/34354-reactions-bank-of-england-bashes-pound-after-halting-rate-rises.md) | +1.7% | +2.3% |
| DXY | 2018-11-29 | [Sterling slips amid Bank of England Brexit warning but European markets stay buoyant](https://feedsoft.ai/events/62300-sterling-slips-amid-bank-of-england-brexit-warning-but-european-markets-stay.md) | -0.4% | -1.0% |

## Sources

- reuters.com: https://www.reuters.com/world/uk/imf-moodys-censure-uk-policy-bank-england-says-will-act-big-2022-09-28/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.