Bank of England 'will not hesitate to change interest rates as necessary' after pound's fall

https://old.reddit.com/r/ukpolitics/comments/xomstm/bank_of_england_will_not_hesitate_to_change/

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The Bank of England says it "will not hesitate to change interest rates as necessary" after markets reacted badly to the chancellor's tax-cutting mini-budget.

The Treasury also attempted to calm market fears by outlining when it is to provide detail on its growth plan.

Advertisement The pound plunged below its all-time low against the dollar - set in February 1985 - of $1.054 early on Monday in Asian trading, fuelling fears that parity was possible ahead.

A low pound will make importing goods in dollars more expensive, which will be passed to consumers.

Shadow chancellor Rachel Reeves said at Labour's party conference: "We are facing a national emergency.

Asked whether he was nervous about the dropping pound, falling stock markets and the rising cost of government borrowing, Mr Kwarteng said: "We've got to have a much more front-footed approach to growth and that's what my Friday statement was all about.