The Bank of England and UK Treasury failed in a joint bid to calm financial markets as both indicated investors will need to wait until November for a broader policy response to the fallout from the new government’s massive tax cuts.
After a day that saw sterling drop to a record low against the dollar and gilt yields soar, speculation had been rife that the UK would launch a stronger intervention, possibly including emergency interest-rate hikes, to stem the decline. Instead, another round of selling hit the pound after a BOE statement that came about 14 hours after sterling’s plunge.
