The Bank of England has said it would not hesitate to change interest rates and was monitoring markets"very closely" after the pound plunged to a record low and British bond prices collapsed in response to the new government's financial plans.
The central bank welcomed"the commitment to sustainable economic growth" from Kwarteng and the independent scrutiny that the OBR growth and borrowing forecasts would bring. The Treasury and central bank statements came towards the end of a day of turmoil for Britain's currency and debt. We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage Preferences
Gilt yields showed little reaction to the combined statements, but very short-term interest rate futures slashed the odds of an emergency rate rise in the coming week. Truss, Britain's former foreign secretary, was elected as prime minister earlier this month by a vote of the Conservative Party's 170,000 members - not the broader electorate - following an internal party rebellion that drove Boris Johnson out of power.