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Sterling hits week high as Kwarteng cuts US trip short to face coup

Kwasi Kwarteng has left the US a day early to take care of the UK’s economy, as the pound rockets to a week high. The Chancellor spent two days in Washington where he met with the IMF and other finance ministers, who urged him to reverse tax cuts quickly to avoid further financial damage. There is widespread speculation that the Chancellor will now U-turn on further elements of his “growth plan”, such as on corporation tax. 

A source close to the Chancellor said his decision to leave Washington prematurely was not the same as the Greek finance minister leaving a G20 early in 2011 to sort out a domestic fiscal problem.

The source said: “This is a completely different scale. It’s all about the medium-term fiscal plan and a wide range of challenges”.

This comes as the pound climbed to a week high of $1.13 on Thursday, after a week on market turbulence. 

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