LONDON: Sterling fell as much as 1% on Thursday after British Prime Minister Lizzo truss Defends economic plans that create chaos in the country’s markets.
Truss said big tax cuts are the right path for Britain and refused to consider reversing the so-called “mini budget” set last week.
After hitting a low of $1.0764, the pound fell 0.88% to $1.0791. The euro was up 0.18% against sterling at 89.54 pence.
Sterling fell to a record low against the dollar of $ 1.0327 on Monday after the new finance minister quasi quartengo Unveiled a plan to reduce taxes and borrowing, especially for the wealthy.
Mini budget wreaks havoc in UK government bond market bank of england Wednesday to intervene.
The BoE said it would buy old government bonds worth around £65 billion after seeing a “failure” in the market.
Sterling jumped to close at $1.0877 on Wednesday as investors digested the BoE’s plans.
However, it resumed its long-running slide on Thursday as the truce came out to defend its government’s policies.
“We are facing tough economic times,” she said on local BBC radio. “I don’t deny it. This is a global problem. But it is absolutely true that the UK government has stepped in and acted in this difficult time.”
jonasso goaltermanA senior market economist at consultancy Capital Economics said both the dollar’s strength and fears about the British economy were hitting the pound on Thursday.
“I don’t think (BoE’s intervention) is going to be a long-term boost for sterling, although it could prevent an extreme recession,” he said.
Golterman said sterling is likely to fall further. He said the BoE is likely to disappoint traders, who expect interest rates to rise to 6% by spring next year, from 2.25% currently.
Truss said big tax cuts are the right path for Britain and refused to consider reversing the so-called “mini budget” set last week.
After hitting a low of $1.0764, the pound fell 0.88% to $1.0791. The euro was up 0.18% against sterling at 89.54 pence.
Sterling fell to a record low against the dollar of $ 1.0327 on Monday after the new finance minister quasi quartengo Unveiled a plan to reduce taxes and borrowing, especially for the wealthy.
Mini budget wreaks havoc in UK government bond market bank of england Wednesday to intervene.
The BoE said it would buy old government bonds worth around £65 billion after seeing a “failure” in the market.
Sterling jumped to close at $1.0877 on Wednesday as investors digested the BoE’s plans.
However, it resumed its long-running slide on Thursday as the truce came out to defend its government’s policies.
“We are facing tough economic times,” she said on local BBC radio. “I don’t deny it. This is a global problem. But it is absolutely true that the UK government has stepped in and acted in this difficult time.”
jonasso goaltermanA senior market economist at consultancy Capital Economics said both the dollar’s strength and fears about the British economy were hitting the pound on Thursday.
“I don’t think (BoE’s intervention) is going to be a long-term boost for sterling, although it could prevent an extreme recession,” he said.
Golterman said sterling is likely to fall further. He said the BoE is likely to disappoint traders, who expect interest rates to rise to 6% by spring next year, from 2.25% currently.