Bank of England Governor Andrew Bailey said he spoke to new Chancellor Jeremy Hunt on Friday and had a "meeting of minds" on the issue of "fiscal sustainability".
Taking questions in Washington, he said: "I can tell you that I spoke to Jeremy Hunt, the new Chancellor, yesterday. I can tell you that there was a very clear and immediate meeting of minds between us about the importance of fiscal sustainability and the importance of taking measures to do that."
He continued: “It’s not appropriate for me to constrain the choices he makes but the very clear message I would give and it is a clear message for everybody, including a clear message for markets. I can tell you there is a very clear and immediate meeting of minds on the importance of stability and sustainability.”
Earlier on Saturday, Mr Hunt warned there will be “difficult decisions” ahead on tax and spending.
Speaking to Sky News, Mr Hunt, twice a Tory leadership contender, wasted no time in criticising the mini-budget but endorsed the "fundamentals" of the push for growth.
He added: “Spending will not go up as much as people want and there’ll be more efficiencies to find and we won’t have the speed of tax cuts we’re hoping for, and some taxes will have to go up. That’s the reality of the very challenging situation we face.”
Although ruling out austerity-like cuts, Mr Hunt said the Government will need to made “very difficult decisions” following the fallout from the mini-Budget in order to restore stability.
