Bank of England says it's monitoring drop in pound, won't hesitate to change interest rates

Bank of England, London (File image: Reuters)

The Bank of England says it is monitoring the drop in the pound and would not hesitate to boost interest rates to control inflation.

The central bank on Monday reiterated its intention to make a full assessment'' of the government's tax and spending plans at the next meeting of its Monetary Policy Committee. That's now scheduled for November.

The bank says in a statement that it will not hesitate to change interest rates by as much as needed to return inflation to the 2% target sustainably in the medium term, in line with its remit."

The British pound fell to all-time low against the US dollar early Monday after Treasury chief Kwasi Kwarteng pledged a sweeping package of tax cuts.