United Kingdom: observers are concerned to see banks withdraw their mortgages

The Bank of England photographed in London, September 22, 2022. AP - Kirsty Wigglesworth

Text by: RFI Follow

1 min

The British government's announcements last week were not enough to stem the economic crisis: since the start of the week, the pound had fallen and the markets had panicked.

The Bank of England had to intervene urgently to prevent the collapse of pension funds.

Analysts do not expect a lasting rebound in the currency without government intervention.


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With our correspondent in London


Émeline Vin

Government policy goes " 

against financial institutions 

", according to the former governor of the Bank of England.

Mark Carney believes that Threadneedle Street was right to release 70 billion euros to try to avoid a financial crisis similar to 2008. 

This Thursday morning, September 29, the pound sterling seemed less unstable against the dollar and the euro, but observers are worried about seeing banks withdraw their mortgages: 40% of products have been removed from offers in six days.

Interest rates are set to rise further in the coming months and a real estate crash is no longer excluded. 

Meanwhile, Prime Minister Liz Truss has defended her "

difficult, but necessary

" decisions in a series of interviews, after keeping a low profile since the announcement of the mini-budget.

A spokesman for the Treasury ensures that there is no ongoing crisis despite inflation, despite the fall of the pound and purchasing power. 

The Conservatives are already beginning to challenge the Prime Minister, who has been in office for barely three weeks.

Some are now calling for the head of its finance minister, Kwasi Kwarteng, nicknamed “the suicide bomber”.

Around 3:50 p.m. GMT on Thursday, the pound took 1.38% to 1.1041 dollars, after falling a little earlier to 1.0763 dollars.


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