THE GOVERNOR of the Bank of England will not “hesitate to change interest rates by as much as needed” amid fears action may be required if the value of the pound continues to fall.

It comes as the Treasury announced the Chancellor will set out a medium-term economic plan in November as he faces pressure to change course after his mini-budget last week.

The pound dropped its lowest ever rate against the dollar overnight in response to Kwasi Kwarteng’s growth strategy, set out in a mini-budget on Friday.

The Treasury has now confirmed that Mr Kwarteng will announce a medium-term fiscal plan on November 23.

The plans will include further details on the UK Government’s fiscal rules, including ensuring that debt falls as a share of GDP in the medium term.

At the same time the Office for Budget Responsibility will published its updated forecast for the current calendar year after the UK Government was accused of preventing the OBR from giving an independent forecast on the mini-budget last week.

The Treasury also confirmed that there will be a Budget in the spring, with a further OBR forecast.

With the pound reaching the lowest level on record against the dollar overnight, the Governor of the Bank of England said he had been given more details today from the Chancellor.

Andrew Bailey said: “The Bank is monitoring developments in financial markets very closely in light of the significant repricing of financial assets.

“In recent weeks, the Government has made a number of important announcements. The Government’s Energy Price Guarantee will reduce the near-term peak in inflation. Last Friday the Government announced its Growth Plan, on which the Chancellor has provided further detail in his statement today.

“I welcome the Government’s commitment to sustainable economic growth, and to the role of the Office for Budget Responsibility in its assessment of prospects for the economy and public finances.

“The role of monetary policy is to ensure that demand does not get ahead of supply in a way that leads to more inflation over the medium term.

"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 MPC 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.”