Bank of England offers to buy bonds from pension funds before they raise rates. The U.K. is a whisper away from becoming bankrupt. How long can Central Banks take hits on their balance sheets?

Bank of England has maintained its ambiguous and confusing bond buying program, with a sentiment that is akin to panic.   In simple terms the U.K. bonds are probably about to collapse and in simpler terms the U.K. is a whisper way away from becoming bankrupt.   The underline problem is that inflation, which has morphed into stagflation for England, has eroded value across the board, more so bond values.   To make things worst, the BoE, which has being very slow in increasing rates, will need to shift into gear and hit most likely hit a 75 basis point rise at their next meeting.  In turn funds, banks, including the BoE will take the loss - hence the BoE offering to buy up the inflation linked bonds from pension funds before their rate trigger.   The BoE will take the hit via unrealized losses, the spill on effect will reduce or cancel receipt payments to government.  Either way BoE's intervention to prop up the Pound  Sterling could be short lived if the rate rise is less than the market expectations.

The above chart shows the Pound and the Japanese Yen (futures market) both are being propped up by their Central Banks, although the Bank of Japan is a lot more averse to increasing rates because of its addiction to believing it still is in deflation, Bank of England will have no choice in raising its rates.  Low currency + inflation = higher energy costs.