The U.K.’s beleaguered pound hit its lowest-ever level against the U.S. dollar before recovering slightly Monday, as investors worried about the government’s plans to cut taxes and the Bank of England warned it would raise interest rates as much as needed to hit its inflation targets.

The central bank’s comments came as U.K. markets continued to be shaken by concerns that the government’s plans for big tax cuts and new spending will spark higher inflation and put government finances at risk.

Late Monday, the pound was down 1.6% to $1.068, adding to a 3% drop last Friday after the government announced its plans for the largest tax cuts in decades. The drop on Friday was the second biggest single-day selloff of the currency since the 2016 U.K. vote to leave the European Union, according to FactSet.