The governor of the Bank of England, Andrew Bailey said in an interview with Channel 4 that the financial crisis triggered in September by Liz Truss’ mini-budget nearly triggered a financial crisis that could have completely collapsed many pension funds.

Queried on just how close the system came to collapse after the announcement of the mini-budget, Bailey said, “I think at the point when we intervened, I can tell you that the messages we were getting from the markets were that it was hours.”

Featuring the biggest suite of tax cuts since 1972, Liz Truss’ mini-budget was funded by a massive increase in borrowing, however it made no effort to explain how the government intended to pay back the borrowed money. Shortly after its announcement, it caused the pound to strike an all-time low against the dollar, and the price of gilts, or UK government bonds, began to collapse.

The Bank of England quickly stepped in by expanding its emergency bond buying, to “restore orderly market conditions,” by supporting the price of gilts.

Bailey noted, “It was becoming unstable and it was affecting pension funds, for instance, and how they were operating. So, we had to step in quickly and we had to step in quite decisively. This felt, and was, a very real threat to financial stability.”

He gave his interview hours following the Bank of England’s 75 basis point rate hike which took rates from 2.25% to 3%, as the central bank continues to battle inflation.

In the interview, Bailey warned viewers that the economy will be facing its longest recession since records began to be kept, and said there would be a “tough road ahead” for British households.