LONDON – Britain still has work to do to restore its international reputation after the turmoil which followed finance minister Kwasi Kwarteng’s Sept. 23 mini-budget, Bank of England deputy governor Dave Ramsden said on Thursday.
Although risk premia on British government bonds have fallen back to levels before the mini-budget, Ramsden said he had still detected some remaining concern during recent travel to meet foreign policymakers.
“Credibility is hard won but easily lost. So whilst on the surface the facts point to this premium having disappeared, there’s no doubt that our reputation has taken a hit … as a kind of economic policymaking jurisdiction,” he told an economics conference hosted by King’s College London.
The IMF welcomed budget plans set out last week by new finance minister Jeremy Hunt.