KWARTENG STRUGGLES TO CALM THE CITY AS CRISIS DEEPENS

HE MEETS TOP BANKERS AS MARKETS FALL AGAIN

- Nicholas Cecil, David Bond, Rachael Burford and Simon English

KWASI KWARTENG was desperately seeking to reassure the City as the pound and stock market fell again this morning after his shock mini-Budget.

The Chancellor was meeting top investment bankers shortly after the International Monetary Fund issued a scathing verdict on his fiscal statement last Friday which sent sterling into a nosedive, wiped billions off the value of shares and hiked the cost of borrowing for homeowners.

By mid-morning, the pound was down 0.56 per cent against the dollar to $1.0669 and the FTSE 100 1.7 per cent lower at 6866 as the markets remained spooked about Mr Kwarteng's plan to load on £72 billion more of debt for Britain, while slashing £45 billion of taxes and a £60 billion support package to keep down energy bills.

Yields on 20 and 30-year government bonds pushed above five per cent to hit multi-year highs, as a sell-off of the country's debt extended into a fourth day of trading.

As the UK economy was reeling: Senior bankers including from JP Morgan and Bank of 

Economy's in a jam, a pickle and a stew, warns ex-M&S chief

America were meeting Mr Kwarteng at the Treasury.

More lenders were expected to pull mortgages amid the uncertainty over how far the Bank of England would hike interest rates to control inflation.

Many homeowners were braced for their mortgage payment bills to shoot up, significantly worsening the cost-of-living crisis already being fuelled by sky-high inflation.

Renters were fearful they could end up paying more as landlords have to pay higher mortgage bills.