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Pound drops more than 1% as Bank of England steps into bond market

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Reuters UK

By Harry Robertson LONDON (Reuters) -Sterling fell more than 1% against the dollar and euro on Wednesday after the Bank of England said it would step in to calm the UK’s frenzied bond markets. The pound was on track for its biggest monthly fall since October 2008, just after Lehman Brothers collapsed. The Bank said it will carry out temporary purchases of bonds and postpone the planned start of its gilt sale programme. It will snap up long-dated UK government bonds from Wednesday, it said, and buy as many as necessary to calm the market. Sterling was last down 1.41% to $1.0586, after hitting a…

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