Sterling collapse: Emergency interest rate rise predicted as Chancellor Kwasi Kwarteng to set out plan

The Bank of England is expected to issue an emergency interest rate increase, just days after the last rise, as concerns worsen for the UK economy.

The news comes after the collapse of the Pound, as Sterling’s value against the Dollar and the Euro plummeted over the last few days.

Traders in the City are already forecasting an emergency rise in UK interest rates in a bid to stabilise sterling.

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The Treasury has now confirmed that Chancellor Kwasi Kwarteng will set out a medium-term fiscal plan on November 23.

The Pound is at an all-time low against the Dollar.
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The Treasury said it will set include further details on the Government's fiscal rules, including ensuring that debt falls as a share of GDP in the medium term.

At the same time the Office for Budget Responsibility will published its updated forecast for the current calendar year.

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The Treasury also confirmed that there will be a Budget in the spring, with a further OBR forecast.

The Bank of England last week upped its interest rates by 0.5% – the biggest rise seen since 2008.

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The base rate has been hiked from 1.75% to 2.25%, a speedy increase after it was last raised in August of this year.

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