Bank of England to Buy Bonds in Bid to Stop Spread of Crisis

LONDON—The Bank of England on Wednesday said it would buy U.K. government bonds with long maturities “on whatever scale is necessary” in an effort to restore order to the market after a large set of government tax cuts sent borrowing costs soaring.

The furious selloff in U.K. government debt in recent days ripped through normally staid parts of the financial markets. Pension funds and insurers who hold financial derivatives tied to U.K. debt in particular faced the possibility of severe losses, according to analysts. The BOE stepped in to try to stop those losses from running out of control, analysts said.

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