Kwasi Kwarteng has told a group of investment bank executives that he is “working closely” with the Bank of England to calm markets.
Kwarteng and City minister Andrew Griffith said during a roundtable that the government has a “clear commitment to fiscal discipline” and outlined coming post-Brexit changes to financial services regulations, according to the Treasury.
Executives from UBS, Bank of America, Morgan Stanley, Citi and JP Morgan Chase were among those in attendance.
It comes as the Bank of England today announced it would start buying government bonds to stabilise the market.
The shock intervention has been triggered by rates on UK government debt surging to levels not seen since 1998.
A Treasury spokesperson said Kwarteng told people at today’s meeting that “last Friday’s Growth Plan will expand the supply side of the economy through tax incentives and reforms, helping to deliver greater opportunities and bear down on inflation”.
They added: “Ahead of the upcoming Big Bang 2.0 deregulatory moment for financial services, the Chancellor discussed potential sectoral reforms that are targeted at boosting growth, generating investment, and delivering higher wages across the UK.
“The chancellor reiterated his view that ‘a strong UK economy has always depended on a strong financial services sector’.”
Pressure is now mounting on Prime Minister Liz Truss to recall parliament from recess and for Kwarteng to deliver a statement on the economy.
More to follow
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