The pound's crash will make inflation worse and push interest rates higher | CNN Business

  • 📰 cnni
  • ⏱ Reading Time:
  • 18 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 11%
  • Publisher: 59%

Philippines News News

Philippines Philippines Latest News,Philippines Philippines Headlines

The UK government’s decision to implement the biggest tax cuts in 50 years while borrowing tens of billions of dollars to subsidize soaring energy costs this winter is a massive gamble that’s sent shockwaves through financial markets. | Analysis

The UK government’s decision to implement the biggest tax cuts in 50 years while borrowing tens of billions of dollars to subsidize soaring energy costs this winter is a massive gamble that’s sent shockwaves through financial markets. Since Friday, when finance minister Kwasi Kwarteng formally announced the plans, the British pound has plunged 5% against the US dollar, bringing its total losses so far this year to an eye-popping 21%.

“The surge in interest rate expectations has already added another £1,000 a year to the coming increase in mortgages for a typical borrower, while sterling’s fall means more expensive imports feeding through to higher inflation,” said Bell. People living in the United Kingdom would see a decline in living standards as a result, he added.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Not a bad one-sentence summary, !

She ignored the Ukraine-Rusia's war effect in her campaigned.

The UK’s Tory government follows the same ideology and dogma that conservatives in the U.S. follow. Lower taxes (and government services) and let the future generations worry about debt.

عليكم التأهب لكوارث عاتية وغير مسبوقة نتيجة أعمالكم الشيطانية والأجرامية التي ارتكبت في دول الشرق الأوسط عامة وفي يمن الإيمان خاصة ( وماكان ربك ليهلك القرى بظلم وأهلها مصلحون ) صدق الله القوي العزيز

mahsaamini

Sounds like a Conservative government

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 326. in PH

Philippines Philippines Latest News, Philippines Philippines Headlines