Dave Ramsden: Kwasi Kwarteng [and L. Truss] will be remembered

Britain still has work to do to restore its international reputation after the turmoil that followed Finance minister Kwasi Kwarteng’s September 23 mini-budget, Bank of England Deputy Governor Dave Ramsden said Thursday.

Although risk premiums on UK government bonds have fallen back to pre-mini-budget levels, Ramsden said he had still detected some concerns during recent trips to foreign policymakers.

“Credibility is hard to gain, but easy to lose. So although the facts indicate that this premium has disappeared, there is no doubt that our reputation has suffered a blow … as a kind of jurisdiction for economic policy-making,” he told an economic conference hosted by King’s College London.

The IMF welcomed the budget plans presented by new Finance minister Jeremy Hunt last week.