Oct 19 (Reuters) – The Dutch central bank is calling on the country’s pension funds to consider boosting holdings of cash and other liquid assets to ensure that they can avoid the turmoil that has hit the UK, the Financial Times reported on Wednesday.

The officials at the Dutch central bank have asked local retirement funds to check for signs of stress, recommending that they review liquidity rules and report on any need for fire sales of assets, the report added, citing people familiar with the matter.

The move comes after UK pension funds were forced to offload billions of pounds government bonds, or gilts, at distressed prices earlier this month, after an ill-fated package of tax cuts sent yields soaring, triggering margin calls on derivatives designed to protect the funds against movements in rates.

Reporting by Rhea Binoy in Bengaluru; Editing by Kim Coghill

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