Published on: 09/26/2022 – 09:13 The British economy is not in its best shape, as evidenced by the impressive fall of the pound sterling, which approached its lowest level on Monday of its history against the dollar. This uninterrupted depreciation is fueling speculation about a possible intervention by the Bank of England, to try to counter the impact on investor confidence of the massive tax cuts announced by the new government. The pound sterling reached its lowest level against the dollar on Monday, September 26, with budget announcements from London worrying investors about the health of British public finances, in a country that may already be in recession. The pound sterling fell up to 1.0863 dollars for the first time since 1985, not far from the absolute record recorded that year, ie 1.0520 dollars. The British currency has lost more than 7% in ten days, a movement on a scale very rare in the foreign exchange market. Investors turned away from the pound after the announcement of the new government of Liz Truss, who unveiled, Friday, a series of fiscal stimulus measures. In particular, they provide for the payment of part of the household energy bill and the renunciation of a series of tax increases. Towards an intervention by the Bank of England? This uninterrupted fall in the pound sterling is fueling the speculation about a possible intervention by the Bank of England (BoE), to try to counter the impact on investor confidence of the massive tax cuts announced Friday by the government of Liz Truss, in which many investors mainly see a danger for the British public finances. “The BoE will have to take action today, for sure, which will lead to a massive hike in interest rates to try to stabilize the sterling”, believes Michael Every , strategist at Rabobank in Singapore. The situation is such that currency traders are now raising the possibility of an emergency meeting of the BoE, with the key to an anticipated rate hike, cited by Erik Nelson of Wells Fargo. see : In the United Kingdom, a “mini-budget” of £150 billion to support the economyThe set should force the United Kingdom to borrow an additional 72 billion pounds on the markets, which worries operators. “The pound sterling is in danger””Between Brexit, the delay of the Bank of England to raise its rates and now the budgetary policy, I think that the United Kingdom will go down in history as one of the worst macroeconomic managements of a great country “, detailed the former American secretary of the Treasury, Larry Summers, who thinks that the pound can reach the level of the dollar. “The pound sterling is in danger”, warned George Saravelos, analyst at Deutsche Bank, who notes as the currency falls, even as borrowing rates on UK debt rise, “which is very rare in a developed economy”. “We are concerned that investor confidence in the UK is rapidly eroding,” he added. While it has been particularly battered, the pound sterling has not been the only one to suffer. The euro fell on Friday to a new low for twenty years, at 0.9681 dollars for one euro. On Monday, the European currency also touched a twenty-year low against the dollar at 0.9569, the results of the Italian legislative elections adding to fears of recession. With AFP
1 thought on “United Kingdom: historic fall of the British currency and fears of a recession”
Comments are closed.
https://tubalkiltsblashsuc.wixsite.com/xhysri-40/post/album-download-unity-of-opposites-by-blend-mishkin-roots-evolutio-rar-zip
https://broommetroteachtam.wixsite.com/ayuxkz-48/post/download-volume-ii-by-giumo-full-mp3-album
https://carolsuetsriferfaw.wixsite.com/hkevcd-61/post/download-various-artists-reggae-instrumentals-from-pama-album-mp3-zip
https://tubalkiltsblashsuc.wixsite.com/xhysri-40/post/unity-of-opposites-by-blend-mishkin-roots-evolutio-itunes-plus-m4a-aac
https://thrumvergespasmdra.wixsite.com/qojzap-92/post/folge-71-hanni-und-nanni-sind-nich-by-hanni-und-nanni-itunes-plus-m4a-aac
https://broommetroteachtam.wixsite.com/ayuxkz-48/post/leaked-download-volume-ii-by-giumo-free-320kbps
https://whelmshoneknollcli.wixsite.com/elnlvk-53/post/leaked-download-iskhova-skazwelonke-by-mthandeni-sk-free-320kbps
https://whelmshoneknollcli.wixsite.com/elnlvk-53/post/album-download-iskhova-skazwelonke-by-mthandeni-sk-rar-zip
https://carolsuetsriferfaw.wixsite.com/hkevcd-61/post/download-reggae-instrumentals-from-pama-by-various-artists-full-mp3-album
https://replit.com/@download-reggae-in-various-a
https://thrumvergespasmdra.wixsite.com/qojzap-92/post/leaked-download-folge-71-hanni-und-nanni-sind-by-hanni-und-nanni-free-320kbps
https://thrumvergespasmdra.wixsite.com/qojzap-92/post/download-folge-71-hanni-und-nanni-sind-nich-by-hanni-und-nanni-full-mp3-album
https://thrumvergespasmdra.wixsite.com/qojzap-92/post/album-download-folge-71-hanni-und-nanni-sind-nich-by-hanni-und-nanni-rar-zip
https://broommetroteachtam.wixsite.com/ayuxkz-48/post/download-giumo-volume-ii-album-mp3-zip
https://bombeturbowrestfoa.wixsite.com/npdvph-14/post/album-download-bound-for-better-days-ep-by-catfish-rar-zip
https://whelmshoneknollcli.wixsite.com/elnlvk-53/post/download-mthandeni-sk-iskhova-skazwelonke-album-mp3-zip
https://whelmshoneknollcli.wixsite.com/elnlvk-53/post/download-iskhova-skazwelonke-by-mthandeni-sk-full-mp3-album
https://whelmshoneknollcli.wixsite.com/elnlvk-53/post/iskhova-skazwelonke-by-mthandeni-sk-itunes-plus-m4a-aac
https://carolsuetsriferfaw.wixsite.com/hkevcd-61/post/leaked-download-reggae-instrumentals-from-pama-by-various-artists-free-320kbps
https://broommetroteachtam.wixsite.com/ayuxkz-48/post/volume-ii-by-giumo-itunes-plus-m4a-aac