Bank of England fails to reassure markets after pound plunge

By JILL LAWLESS and DANICA KIRKA
Associated Press

LONDON (AP) — The Bank of England has sought to reassure financial markets after the British pound touched an all-time low against the U.S. dollar, but its entreaty has fallen flat for investors concerned about the government’s sweeping package of tax cuts. The central bank said Monday that it’s “closely monitoring’’ the markets and wouldn’t hesitate to boost interest rates to curb inflation. The statement came after the pound plunged as low as $1.0373, its lowest since the decimalization of the currency in 1971. There are concerns that tax cuts announced Friday by Treasury chief Kwasi Kwarteng would swell government debt and fuel further inflation as the United Kingdom teeters toward recession.