Pound falls again as Bank rules out emergency rate hike

VSChancellor Kwasi Kwarteng must do more to reassure markets about his plans for the economy after the pound’s fall, a senior adviser to Liz Truss has said.

Gerard Lyons, an external adviser to the Prime Minister, told Bloomberg: “He needs to reaffirm that the tax cuts are only part of the story, not the whole story. What they are following is a supply side program.

However, Mr Lyons said the UK government did not need to turn around, adding that it was also up to the Bank of England to act.

He said: “It’s not just up to the chancellor, it’s also up to the central bank to try to get ahead, to try to address market concerns. We need to get away from cheap money.

Mr Lyons, who is also chief economic strategist at online wealth manager Netwealth, said the chancellor’s tax package had been targeted at a domestic and commercial audience but did not do enough to calm investors.

“Markets were still not convinced that his fiscal easing was necessary, non-inflationary and affordable. It is clear from the market reaction that these concerns have not been fully addressed. »

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