Bank governor urges John Healey to use budget to allay market fears amid bond turmoil

Andrew Bailey tells chancellor whatever the stance of fiscal policy, it must be credible and be seen as such by financial markets'

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The Bank of England governor, Andrew Bailey, has urged the chancellor, John Healey, to agree a budget that reassures financial markets after the UK's medium-term borrowing costs hit a fresh 19-year high.

With investors offloading government bonds previously considered safe havens amid fears of rising inflation, Bailey told all governments caught in the crosshairs of financial speculators that they needed to avoid market turmoil that raises the interest paid on debt.