Bank of England warns of ‘significant’ rate rises 

Chancellor Kwasi Kwarteng (Aaron Chown/PA)

The Bank of England has signalled it is ready to ramp up interest rates to shore up the pound as Chancellor Kwasi Kwarteng insisted he was “confident” his tax-cutting strategy will deliver the promised economic growth.

After a day of turmoil in the markets on Monday which saw sterling slump to a record low against the dollar, the Chancellor sought to reassure City investors he has a “credible plan” to start reducing Britain's debt mountain.