The Bank of England (BoE) has said it “will not hesitate to change interest rates as necessary to return inflation to the 2% target sustainably in the medium term, in line with its remit”.

BoE governor Andrew Bailey says the Monetary Policy Committee (MPC) will make a full assessment at its next MPC meeting on 3 November.

Today’s statement says: “As the MPC has made clear, it will make a full assessment at its next scheduled meeting of the impact on demand and inflation from the Government’s announcements, and the fall in sterling, and act accordingly,”

The next MPC meeting is scheduled for 3 November.

It was noted that the bank is “monitoring developments” in the financial markets “very closely”.

Next month, chancellor Kwasi Kwarteng will, as part of the Growth Plan set out last week, outline regulatory reforms to ensure the UK’s financial services sector remains globally competitive.

Kwarteng will then set out his medium-term fiscal plan on 23 November.

As a result of the sterling’s record-breaking drop against the US dollar, a host of lenders have announced product withdrawals today, with one of the most eye-catching being Halifax Intermediaries’ latest update.

Additionally, Kensington will be removing the majority of its residential and buy-to-let (BTL) options today, and Keystone has announced that all of its product offerings will be taken off the market just before midnight tonight.

BM Solutions is also withdrawing its BTL and Let to Buy mortgages that charge a fee, Clydesdale Bank is taking a selection of new business deals off the market, West One has withdrawn its entire BTL catalogue with immediate effect, and The Nottingham for Intermediaries is in the process of repricing a number of its offerings.