WASHINGTON (Reuters) – Bank of England Governor Andrew Bailey said he and Britain’s new finance minister Jeremy Hunt had agreed on the need to repair the country’s public finances after the tax cut plans announced by Hunt’s predecessor triggered bond market turmoil.
“I can tell you that I spoke to Jeremy Hunt, the new Chancellor, yesterday and I can tell you that there was a very clear and immediate meeting of minds between us about the importance of fiscal sustainability and the importance of taking measures to do that,” Bailey said in Washington on Saturday.
“Of course there was an important measure taken yesterday,” he said.
British Prime Minister Liz Truss said on Friday that the country’s corporation tax rate would increase, abandoning her plan to freeze it at current levels, and government spending would rise by less than previously planned.
(Reporting by Howard Schneider in Washington; Writing by William Schomberg; editing by Michael Holden)