According to Reuters, Kwarteng’s tax-cut plans, on top of an energy bill bailout – all funded by a huge increase in government borrowing – have triggered financial market chaos. One source at the meeting said Kwarteng had asked the assembled finance bosses what they could do to calm markets. Meanwhile, the BoE on Wednesday sought to quell the firestorm in Britain’s bond markets, saying it would buy as much government debt as needed to restore order after new Prime Minister Liz Truss’s tax cutting plans triggered financial chaos. Its announcement, which represented a sudden reversal of plans to sell bonds it had amassed since the global financial crisis of 2008-2009, immediately pushed down borrowing costs. The BoE said it would return to its plan to sell bonds at the end of October.
