Sterling up to its highest level since mid-budget

The pound has gone up to its highest level for two weeks after the chancellor tried to reassure investors by pledging to bring forward details of how he would cut debt.

In the wake of the mini-budget, the pound fell to a record low, government borrowing costs surged and the Bank of EnglandBank of England had to step in and take action after the dramatic market movements put some pension funds at risk of collapse.

The market turmoil was caused by the lack of an independent forecast on the impact of the plans, which had been offered by independent forecaster the Office for Budget Responsibility OBR, but was dismantled by the government.

After a backlash from Tory MPs, Mr Kwarteng made two dramatic U-turns on Monday, declaring he would not change the top rate of tax for the highest paid, and then bringing forward his plan to cut debt, he said if the OBR forecast stacks up then interest rate expectations could fall.

Interest rates have gone up seven times since December as the Bank tries to curb inflation -- the rate at which prices rise. This is currently at a nearly 40 year high of 9.9%.

If the OBR forecast is well received, Stride said. The Bank of England will come up with a lower interest rate, which will be very helpful for those with mortgages, business borrowing, and even the cost of government servicing its own debt. Mr Stride said much would depend on the government proving that it can boost economic growth to a rate of 2.5% a year, which will be difficult to achieve.