Government is 'undercutting' economic institutions, says former Bank governor

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The former governor of the Bank of England accused the government of cutting the UK's economic institutions.

Sir Mark said that the government was working at some cross-purposes with the Bank.

Friday's'mini-budget' caused turmoil on financial markets and caused the pound to fall.

The British currency hit a new low against the US dollar.

Some of the value of UK government bonds was halved due to investors demanding higher returns.

Sir Mark said that having a partial budget has led to dramatic moves in financial markets.

The Bank bought £65 billion of UK government bonds to calm the market. The pound was worth more against the dollar by Thursday morning.

The tax package is the biggest in 50 years. The £45 billion cut has raised concerns that government borrowing could go up.

The government sells bonds on the global financial markets to raise money for its spending plans.

Some pension funds were forced to sell assets due to the collapse in the price of those bonds.

The governor of the Bank of England was Sir Mark.

He was the head of Canada's central bank for five years, during which time he helped the country avoid the worst effects of the financial crisis.