welcome to the programme. amid the turmoil in uk markets this week, the chancellor met the us banks today and was told in no uncertain terms that his budget which he has planned for november is way too far away . the government needs to communicate much sooner, said the banks, on what the solution will be to the problem the city believes they created. it has been another chaotic day on the markets. this morning, the bank of england performed a screeching u turn, putting the brakes on its plan to sell government bonds and instead launching a new scheme to buy them. think of it as a form of digital money printing. the bank is creating funds to to buy bonds which the government issues to borrow money. and this is why. since the mini budget, the cost of government borrowing long term has shot up. it was spiralling above 5%. that s a 20 year high. we have seen rises in the last two days that would normally take years. the bank of england is buying up the debt, in essence creating
to draw a line between her premiership and what went before. and the thing that seems to have tipped things over the edge is abolishing the top rate of tax. and the cumulative effect of all of those tax cuts, i think the market justjudged that it was one tax cut too many. just judged that it was one tax cut too man . ., just judged that it was one tax cut too man . . ., ., , just judged that it was one tax cut tooman . ., ., , , just judged that it was one tax cut too man . . ., ., , , too many. and how does this look from outside? too many. and how does this look from outside? you too many. and how does this look from outside? you were too many. and how does this look from outside? you were over - too many. and how does this look from outside? you were over in i from outside? you were over in washington. moody s says this mini budget risks permanently weakening the uk s debt affordability , which suggest the rating agencies are looking at a downgrade. confidence is like quic