UK Government Hopes to Rebuild Credibility After BOE Bailout

The UK government hopes the Bank of England’s intervention to stave off a market crash on Wednesday will buy time to rebuild confidence in the disastrous mini-budget.

According to an individual familiar with the government’s thinking, there is no plan to reverse the tax cuts announced. Instead, Chancellor Kwasi Kwarteng wants to calm febrile markets by clarifying his strategy and restore faith in his commitment to sound money.

Bond markets and the pound plunged in the wake of Friday’s statement, when Kwarteng unveiled £45 billion ($49 billion) of annual unfunded tax cuts that sparked fears the national debt will spiral ...