British pound whipsaws after mixed messages from the Bank of England

In this photo illustration, the British pound is seen displayed.

According to a Financial Times report, the Bank of England is signalling a willingness to extend its emergency bond-buying program.

The report came on the heels of Andrew Bailey's comments that the central bank would end the rescue program on Friday.

Bailey said that part of the essence of a financial stability intervention is that it is clearly temporary.

CNBC asked the Bank of England if they would comment on the report outside of office hours.

After the report was published, the pound rose to $1.106, after falling as low as $1.0922. By 6 a.m., it was at 1.0988. Time in London.

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Line chart with 1438 data points.The chart has 1 X axis displaying Time. Range: 2022-10-11 03:18:00 to 2022-10-12 03:18:00.The chart has 1 Y axis displaying values. Range: 1.09 to 1.12.End of interactive chart.

The Pensions and Lifetime Savings Association wants the intervention to be extended.

A key concern of pension funds since the Bank of England's intervention has been that the period of purchasing should not be ended too soon, for example, many feel it should be extended to the next fiscal event on 31 October.

Additional measures should be put in place if bond buying is stopped.

Bailey said that the BOE doesn't intend to buy bonds anymore.

We have decided to leave by the end of this week. He said that they think the rebalancing needs to happen.

The funds involved and the firms that manage them have three days left. You have to complete this task.

There was only so much the Bank of England could do to soothe the currency and bond markets since the driver of market volatility was fiscal policy.

The Bank is trying to fulfill its mandate for financial stability by creating instability in the market.

I think it will be a few weeks of uncertainty in the market. The next catalyst is the full budget with the OBR forecast.

The full fiscal plan and forecasts from the Office for Budget Responsibility will be brought forward by three weeks.

The Bank of England planned to begin selling its gilt holdings on the same day.

The report was contributed to by CNBC employees.