Bank of England forced to intervene as pound crashes to all-time low after ‘disastrous’ mini-Budget

Emergency action fails to prop up pound, leaving Liz Truss facing political crisis after just three weeks in power

The Bank of England was forced into an emergency intervention on Monday, warning that it would not hesitate to hike interest rates “as much as needed” after the pound plummeted in the wake of Kwasi Kwarteng’s mini-Budget.

Sterling fell to its lowest ever level against the US dollar, dropping by more than 4 per cent to just $1.03 before regaining some ground.

The Bank issued a statement pledging to do whatever it takes to conquer inflation, while the chancellor promised new rules to get a grip on debt.