British U-Turn Shows Central Banks Still Rule (and That’s Not Always Good)

In its game of chicken with the U.K. government, the Bank of England has emerged victorious. Investors are relieved, but in truth nobody has much to celebrate.

On Monday, U.K. Treasury chief Jeremy Hunt rolled back £32 billion, equivalent to about $36 billion, out of the £45 billion in tax cuts promised by his predecessor Kwasi Kwarteng. British sovereign bonds rallied, particularly those with shorter maturities.