Rachel Reeves has revealed she has held talks with the Bank of England amid the global stock market turmoil following Donald Trump’s tariffs.The Chancellor told MPs at Treasury questions that she had spoken to Governor Andrew Bailey about the state of the financial markets – and he had reassured her that the banking system was “resilient” and that “markets are functioning effectively”.”The United States’ decision to impose tariffs has had and will continue to have huge implications for the world economy,” Reeves said.”These implications have been reflected in the reaction that we have seen in global markets in recent days which the financial authorities have of course been monitoring closely.”This morning, I spoke to the Governor of the Bank of England who has confirmed that markets are functioning effectively and that our banking system is resilient,” she said.”I know too that this is an anxious time for families who are worried about the cost of living. We have your backs.”We have your backs. And British businesses who are worried about what a changing world will mean for them, we have your backs too.”Her words followed a slight reprieve for the UK economy as Britain’s stock markets opened in London this morning.The Ftse 100 opened with a 0.91 per cent rise – while the larger Ftse 250 index grew 1.22 per cent.And the Chancellor sounded bullish in the Commons as she vowed that Labour “cannot watch and wait”.”This Government is clear-eyed that our response to global change cannot be to watch and wait – but instead to act decisively, to take the right decisions that are in our national interest and protect working people,” she said.”All of the decisions that we make as a Government will be underpinned by the stability of our non-negotiable fiscal rules. “A trade war is in nobody’s interest. It is why we must remain pragmatic, cool-headed and pursue the best deal with the United States that is in our national interest. “This remains our priority – and that was part of the discussion that I had with US Treasury Secretary Scott Bessent last week. We have been that clear nothing is off the table.”More to follow…
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