In the midst of an economic and political crisis, she called, weeks after taking office as British Prime Minister, Liz Truss, yesterday apologized for mini budget errors. Although she has already been forced to make a humiliating U-turn by canceling tax breaks and aggressively cutting government spending, Truss has apologized for failing to shake Britain’s financial stability.

At the same time, however, some volatility seems to have returned to the markets, with British government bonds fluctuating wildly during yesterday’s session, sometimes rising sharply and sometimes falling sharply. Because conflicting news about her next steps Bank of England, which has already completed its extraordinary bond purchase program as of Friday. According to a Financial Times report, the Bank of England has decided to shelve its plan to shrink its portfolio by selling bonds. His goal, always according to the British newspaper, is to ensure that the market stabilizes and only after that proceed with the sale of bonds. However, during the day the Bank of England denied this message, stressing that no such decision had been made. His statement sent British government bonds to a new state, although the bank said it was possible that it could indeed announce a delay in the relevant process at a later date. Bank of England officials, led by Governor Andrew Bailey, have repeatedly emphasized that the central bank is ready to change course when circumstances require it in difficult situations.

In this regard, the Bank of England has in its portfolio British government bonds with a total value of almost 840 billion pounds, which is equivalent to 965 billion euros. These are securities he accumulated when he implemented his own quantitative easing program, which he launched more than a decade ago, to stimulate the economy and help it recover from both the global financial crisis and the pandemic recession. However, it has already once delayed the launch of a round of sales of these securities due to the crisis caused by the government’s mini-budget last month. As far as the movement of UK government bonds is concerned, the 30-year bond yield has clearly retreated from a record high, which recently soared to over 5%. They are now close to 4.32%, clearly lower but still above the 3.75% level they were at before the announcement of former Finance Minister Kwasi Kwarteng’s controversial mini-budget.

After all, the pound sterling has rebounded significantly since the announcement by the new finance minister on Monday, hovering between $1.13 and €1.15. Bank of England officials insist they can tame inflation with a single instrument of interest rates and without any recourse to quantitative tightening programs, the opposite of quantitative easing programs.