Financial institution of England tries to calm panicked markets

Bank of England tries to calm panicked markets

CNN Business

UK policymakers are trying to calm markets after a plan by Prime Minister Liz Truss to cut taxes while ramping up borrowing sparked panic among investors worried it could feed inflation and destabilize government finances.

The Bank of England said Monday that it is “monitoring developments in financial markets very closely in light of the significant repricing of financial assets.”

It said it would look into the effects of the government’s plans on inflation at its next scheduled meeting in November, and would “not hesitate to change interest rates as necessary.”

The bank issued its comments shortly after the UK Treasury said that Kwasi Kwarteng, the country’s finance minister, would outline plans to ensure the sustainability of UK debt over the medium term on November 23. The country’s budget watchdog has also been instructed to release…