LONDON, Sept 27 (Reuters) – The Bank of England (BoE) is expected to express a “significant” reaction to the massive tax and tax cuts announced last week by the British government but it is expected to wait until its next meeting in November , before taking the initiative, its chief economist, Huw Pill, said on Tuesday.
“It’s hard not to come to the conclusion that this will require a meaningful monetary policy response,” he said at a monetary policy symposium in London.
Finance Minister Kwasi Kwarteng’s announcements on Friday aroused mistrust in the financial markets, which resulted in an acceleration of the decline of the pound sterling, which fell to its lowest level against the dollar, and in a surge in UK government bond yields. (Report David Milliken and Marc Jones, French version Marc Angrand)