UK finance ministry says BoE action to tackle ‘significant volatility”

LONDON (Reuters) – Britain’s finance ministry said Bank of England intervention in the government bond market was needed to tackle “significant volatility” and market dysfunction, and any losses would be fully indemnified by the government.

“The Chancellor is committed to the Bank of England’s independence. The Government will continue to work closely with the Bank in support of its financial stability and inflation objectives,” a finance ministry spokesperson said in a statement.

(Reporting by Sachin Ravikumar and David Milliken; editing by William James)