Sterling plunges as Kwarteng set to defend record in Commons showdown
Pound falls to all-time low against US dollar
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The pound has taken another nosedive against the dollar, as the Chancellor prepares to defend his budget in the Commons this afternoon. The pound currently stands at $1.10 after recovering slightly to $1.14 last week, following Kwasi Kwarteng’s U-turn on the abolition of the 45 percent tax rate. On Tuesday, Mr Kwarteng will lead a ministerial team for Treasury oral questions in the House of Commons, where he will try and sell the “growth plan” that has led to market turmoil and has attracted fierce criticism from both Labour and members of the Conservative Party. The Labour Party is preparing to attack the Government and demand even more U-turns during the brutal showdown today at 2:30pm. After the Chancellor announced his budget on September 23, the pound briefly fell to $1.03, the lowest level ever recorded.
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Bank of England takes fresh emergency action as it warns UK economy ‘at material risk’
The Bank of England has announced it is taking further emergency action after warning of “material risk to UK financial stability”.
The Bank said it would widen the scope of its bond-buying programme as the market continues to suffer following Kwasi Kwarteng’s budget announcement.
The Bank said: “The beginning of this week has seen a further significant repricing of UK Government debt, particularly index-linked gilts.
“Dysfunction in this market, and the prospect of self-reinforcing ‘fire sale’ dynamics pose a material risk to UK financial stability.”
It added that its latest efforts will “act as a further backstop to restore orderly market conditions”.
Sterling plunges as Kwarteng set to defend record in brutal Commons showdown
The pound has taken another nosedive against the dollar, as the Chancellor prepares to defend his budget in the Commons this afternoon.
The pound currently stands at $1.10 after recovering slightly to $1.14 last week, following Kwasi Kwarteng’s U-turn on the abolition of the 45 percent tax rate.
On Tuesday, Mr Kwarteng will lead a ministerial team for Treasury oral questions in the House of Commons, where he will try and sell the “growth plan” that has led to market turmoil and has attracted fierce criticism from both Labour and members of the Conservative Party.
The Labour Party is preparing to attack the Government and demand even more U-turns during the brutal showdown today at 2:30pm.
After the Chancellor announced his budget on September 23, the pound briefly fell to $1.03, the lowest level ever recorded.
Good morning
Good morning, I’m Olivia Stringer and I’ll be bringing you all the latest developments on the Pound for the next eight hours. Please feel free to get in touch with me as I work if you have a story or tips to share! Your thoughts are always welcome.
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