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Liz Truss to hold emergency talks with budget watchdog after failing to calm markets

Liz Truss is reportedly due to hold an emergency meeting with financial forecasters after failing to calm chaos in the markets.

The PM and her Chancellor Kwasi Kwarteng will holds talks with the Office for Budget Responsibility on Friday, according to The Guardian.

It comes after calls for Mrs Truss to "come out of hiding" following her disastrous mini-budget announcement.

Her financial plan of tax cuts and bonuses for the bankers sent the pound crashing to a record low against the dollar.

The Government did not ask the OBR to produce a forecast for the mini-budget, fuelling concerns within the markets.

However, Mrs Truss is now reportedly set to meet the OBR's chair Richard Hughes on Friday.

Chancellor Kwasi Kwarteng delivered the disastrous mini-budget in Parliament last week (

Image:

Simon Walker / HM Treasury)

A Government source told The Guardian that the meeting was "like trying to read the manual after you've broken the thing".

It is believed the talks will focus on the economic turmoil that has consumed the UK since the OBR's last forecast in March.

It comes after Mrs Truss finally broke her silence today over her disastrous mini-budget.

She rejected calls for a U-turn in a series of brutal BBC local radio interviews.

Mrs Truss was asked "where have you been?" after days of remaining silent amid turmoil in the financial markets.

Former Tory chancellor Ken Clarke said he had never known a budget cause a similar financial crisis (

Image:

Nottingham Post)

As each presenter rushed through just a few minutes’ of precious time, she was also asked whether she was "ashamed of what you've done" and "what on earth were you thinking".

One presenter asked: "Have you taken the keys to the country and crashed the economy?".

Another said: "It's hard to know what is falling more since you entered Downing Street, the value of the pound or the Tory poll rating".

Despite calls from opposition parties and some Tory MPs and the IMF to abandon the tax slashing measures for the richest 1%, the Prime Minister repeatedly insisted she had the "right plan".

But she admitted the Government's decisions have been "controversial".

Shadow Chancellor Rachel Reeves slammed the PM for making the "disastrous situation" even worse with her BBC interviews (

Image:

AFP via Getty Images)

After the Bank of England's £65 billion bailout to stop pension funds going bust, she said: "As Prime Minister, I have to do what I believe is right for the country".

But former Tory chancellor Ken Clarke warned: "I've never known a Budget to cause a financial crisis like this before.”

He added: "I still hope in two years' time, they might look like a normal, competent, Conservative government because no Conservative government in my lifetime would ever have made a mistake of this kind".

Shadow Chancellor Rachel Reeves said: “The Prime Minister’s interviews this morning have made this disastrous situation even worse.

"Her failure to answer questions about what will happen with people’s pensions and mortgages will leave families across the country facing huge worry.”

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