Kwasi Kwarteng assures City of support for Bank of England independence

theguardian.com:

The new chancellor, Kwasi Kwarteng, has used his first meeting with bank bosses to reiterate his support for the Bank of England’s independence, and promise that the new government was poised to unveil a “radical” plan for economic growth.

Kwarteng, who previously led the business department, told 14 executives from City firms, including HSBC, NatWest and Barclays, that the government was pursuing “unashamedly pro-growth” policies that would involve slashing taxes and regulations, while creating the right conditions for investment and innovation.

He said the government’s first priority would be to support families and businesses hit by rising energy prices, but that this would mean higher borrowing in the short term.

However, Kwarteng assured them that the government was committed to reducing debt – or at least keeping it on what the Treasury said was a “downward path”. A No 11 spokesperson said the chancellor had emphasised that his “radical supply-side agenda” would also require “monetary stability and fiscal discipline”.

It comes as the prime minister, Liz Truss, and her newly appointed cabinet prepare to unveil a plan to cap energy prices for households and businesses this week that could be the most costly government intervention since the financial crisis.

“We face extraordinary economic challenges in the coming weeks and months and I know that families and businesses across the UK are worried,” Kwarteng said