Kwasi Kwarteng begins daily crisis meetings with Bank amid mortgage rate fears – and begs City bosses to trust him | The Sun
KWASI Kwarteng today began daily crisis meetings with the Bank of England amid fears of crippling mortgage rate hikes.
The Chancellor begged City bosses to trust his plan – insisting his tax bonfire will fire up the economy.
He told investors he is “confident” growth will come through tax cuts and urged them to wait for his strategy to wrestle down debt.
Mr Kwarteng said Cabinet Ministers will be setting out reforms in the coming weeks, that are expected to focus on immigration and planning reforms.
He met investors after the pound plunged to its lowest value against the dollar since 1971 following his £45billion tax giveaway last week.
After sinking to £1.03 Sterling this afternoon rebounded slightly to £1.08 in some cause for comfort.
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The market meltdown has sparked homeowners fears the Bank of England could raise interest rates.
Interest rates could spiral to 6 per cent and whack an extra £7,300 on mortgage repayments.
Today, the rates for a two year fixed mortgage sit at 4.78% up from 2.38% last year, according to MoneyFacts.
The Treasury revealed his is meeting with the Governor Andrew Bailey on “a daily basis”.
The Chancellor will map out his blueprint to reduce massive levels of debt with a "Medium Term Fiscal Plan" on November 23.
Government departments face real term cuts under Mr Kwarteng's plan to wrestle down Britain's huge debt pile.
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Whitehall Budgets will rise slightly, but not in line with the record levels of inflation.
It means public sector pay hikes have to be found within existing departmental Budgets, throwing them into doubt.
The Chancellor will lay out the specifics of his plan to decrease borrowing on November 23.
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