Bank of England preparing emergency intervention after pound slumps to all-time low

Chancellor Kwasi Kwarteng must do more to reassure markets about his plans for the economy after the pound’s slump, a top adviser to Liz Truss has said.

Gerard Lyons, an external adviser to the Prime Minister, told Bloomberg: “He needs to reaffirm that tax cuts are only part of the story, not the full story. What they’re following is a supply-side agenda.”

However, Mr Lyons said the UK government didn’t need do a “U-turn,” adding that it was also incumbent on the Bank of England to take action.

He said: “It’s not just down to the Chancellor, it’s also down to the central bank to try and get ahead of the curve, to try and address the market concern. We need to move away from cheap money.”

Mr Lyons, who is also chief economic strategist at online wealth manager Netwealth, said the Chancellor’s fiscal package had been targeted at a domestic and business audience, but didn’t do enough to calm investors.

“Markets were still not…

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