Kwasi Kwarteng spooked the markets by announcing Britain’s biggest tax cuts for 50 years on FridayThe Bank of England said yesterday that it “will not hesitate” to raise interest rates after the plunging value of the pound caused Britain’s biggest mortgage lenders to withdraw fixed-rate deals. Sterling at one point fell to a record low against the dollar before regaining some ground amid continuing market turmoil after Kwasi Kwarteng, the chancellor, announced more than £45 billion worth of tax cuts. SponsoredAndrew Bailey, governor of the Bank of England, and the Treasury issued apparently co-ordinated statements in an attempt to calm the markets and shore up the pound. However, sterling fell after their interventions amid concerns that the Bank had ruled out an emergency rise in interest rates. The next interest-rate decision is scheduled for November 3, with economists forecasting that

Source: The Times September 27, 2022 01:20 UTC