Banks warned Kwasi Kwarteng that the upcoming Budget was “far too far away” and encouraged him to lay out his strategies for accelerating economic growth before November.
In an effort to calm investors amid market turbulence following his tax-cutting mini-Budget last week, the Chancellor met with top executives of significant Wall Street banks this morning.
Mr. Kwarteng reiterated his fiscal strategy and declared that he will reveal more information regarding reform of City regulations to spur growth in late November.
But according to a source who spoke to reporters, the bank executives protested that this was “far too far away” and urged the chancellor to “communicate often, and overcommunicate, if necessary.”
Mr. Kwarteng made no mention of perhaps moving forward the deadline for new fiscal regulations.
The Bank of England’s unexpected £65 billion intervention in bond markets today was prompted by fears of an impending catastrophe in the UK pension market.
Investment banks and fund managers have recently told the Bank that the significant decline in bond prices has compelled pension funds to sell bonds to satisfy margin calls.
In turn, this drives prices even lower in a market loop that reinforces itself. Authorities were informed that a collision could happen as soon as today.
Andrew Bailey, governor of the Bank of England, is trying to stop the market decline by purchasing bonds in an effort to interrupt the cycle.
