Comment by uup

I don’t really see a good way out of this for the UK if pensions are in such a bad state that they can’t tolerate any change in interest rates. The era of free money is over, at least for now. The BoE can’t keep rates at 0 any longer. The government is going to need to borrow money to function (like all governments do). So the only option is going to be to sell bonds on the open market. That’s going to mean that bond prices will fall to the market rate, which is apparently higher than the pensions can tolerate.