The British Government Accepts Destroyment

Bank of England governor Robin Lee Pemberton believed it was time to throw in the towel and stop spending before banks reserves were exhausted. Scale of intervention became heavier after rise in interest rates because I think there were some people in the market who said that makes no sense in the context of the UK. The more those rates got the more it's going to be worse than the pound. It had started to become clear that getting out of the ERM was bound to happen and the sooner it was over the better. That afternoon it became a veritable avalanche of selling. At 7.30 p.m. the British government accepted defeat with the following news conference.