Central bank stops short of emergency rate hike and instead says it will make full assessment in November
- Markets warn interest rates could triple by next year
- Q&A: what does the pound’s slump mean for the UK?
Ministers have been struggling to prevent a full-scale loss of financial market confidence in its economic strategy after the Bank of England’s decision to rule out an emergency rise in interest rates prompted fresh selling of the pound.
Attempts by Threadneedle Street and the Treasury failed to repair the damage caused by Kwasi Kwarteng’s mini-budget last Friday, with sterling falling to a record low against the US dollar.