KWASI Kwarteng will attempt to calm market jitters about his tax-cutting bonanza by laying out a plan to wrestle down Britain’s debt.
The Chancellor will map out his blueprint to reduce massive levels of borrowing with a statement on November 23.
Kwasi Kwarteng will unveil another economic plan in November
Separate changes to immigration rules to allow foreign workers to plug the staff shortage will be unveiled in late October.
The Chancellor spooked financial markets after announcing the biggest tax giveaway since 1972 at last week’s “mini-Budget”.
His £45billion relief package – on top of a £60billion energy scheme – set trader nerves jangling and sparked a run on the pound.
Sterling has now dipped to 1.07 against the dollar in the worst days for Britain’s currency since 1971.
The Bank of England issued a statement this afternoon confirming it has been monitoring developments in financial markets “very closely”.
It added: “The role of monetary policy is to ensure that demand does not get ahead of supply in a way that leads to more inflation over the medium term.”
“As the MPC has made clear, it will make a full assessment at its next scheduled meeting of the impact on demand and inflation from the Government’s announcements, and the fall in sterling, and act
accordingly.
“The MPC will not hesitate to change interest rates by as much as needed to return inflation to the 2% target sustainably in the medium term, in line with its remit.”
The next MPC meeting – where interest rates may be moved – is November 3.
Stock markets around the world slid today as investors concerns over high interest rates, inflation and energy shortages continue to grow.
At 1.45pm, the FTSE 100 fell below 7,000 and the FTSE 250 fell 1.56%.
The index tracks the performance of the UK’s 100 biggest companies.