After the decline of the pound, the bank will “not hesitate” to boost interest rates.

25

After the decline of the pound, the bank will “not hesitate” to boost interest rates. At its meeting in November, the Bank declared that it will “not hesitate” to raise interest rates to combat inflation.

The Treasury announced that it would publish economic estimates in November along with strategies for debt reduction.

Following the two announcements, the pound plummeted once again, and some UK lenders announced they were suspending new mortgage transactions.

In reaction to the volatility, Halifax, the biggest mortgage lender in the UK, announced it would temporarily stop offering any mortgage plans containing fees.

Additionally, new consumers are no longer being offered mortgage products by Virgin Money and Skipton Building Society.

Halifax, a member of the Lloyds Banking Group, stated, “We’re making certain modifications to our product range as a result of considerable changes in the cost of finance.

After Chancellor Kwasi Kwarteng announced he intended additional tax cuts, the pound nearly hit an all-time low versus the US dollar earlier in the day, but it later started to rebound.

The greatest tax cuts in fifty years, as revealed in Friday’s mini-budget, will necessitate a sharp increase in government borrowing, which has been sending the pound down.

Some experts had projected the Bank of England will convene an emergency meeting soon to hike interest rates in an effort to stop the decline and stabilize increasing prices.

Imported items are more expensive to purchase when the pound is weak, and this could result in further increases in the cost of living. Oil and gas imports are considerably more expensive because they are valued in dollars.

The Bank of England stated that it was “very closely monitoring financial market developments,” but added that it will “make a detailed assessment at its next scheduled meeting of the impact on demand and inflation from the government’s pronouncements, as well as the decline in sterling.”

The government announced that the complete growth and borrowing predictions from independent forecaster the Office for Budget Responsibility will be included in its financial plan on November 23 in an effort to calm the markets.

Further information regarding the government’s fiscal policies, particularly how it intends to try to reduce debt, was also promised.