The pound has risen to its highest level for two weeks.
The pound has risen to its highest level for two weeks after the chancellor attempted to reassure investors by pledging to bring forward details of how he would cut debt.
In the wake of the mini-budget, the pound slumped to a record low, government borrowing costs surged and the Bank of England was forced to step in and takeThe market turmoil was fuelled by the lack of an independent assessment on the impact of the plans, which had been offered by independent forecaster the Office for Budget Responsibility , but was declined by the government.
His staff worked around the clock to help clients tie down deals before lenders pulled their products or replaced them with more expensive ones.By the end of the week there were 40% fewer products available than before the mini-budget. After a backlash from Tory MPs, Mr Kwarteng made two dramatic U-turns on Monday, first declaring he would not scrap the top rate of tax for the highest paid and then later agreeing to bring forward his plan to cut debt.A fall in the value of the pound will increase the price of goods and services imported into the UK from overseas.
Interest rates have risen seven times since December as the Bank tries to curb inflation - the rate at which prices rise. This is currently at a nearly 40-year-high of 9.9%.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Liz Truss & Kwasi Kwarteng ring round Tory MPs in bid to kill off mutinyEMBATTLED Liz Truss and Kwasi Kwarteng have been personally ringing round Tory MPs in a bid to kill off mutiny. In a highly unusual move, the Prime Minister and her Chancellor have launched a charm…
Read more »
Truss ‘throws Kwasi Kwarteng under a bus’ over tax cut for richestThe Prime Minister provoked a fresh row at the start of the Tory conference by saying the income tax cut was a ‘decision the Chancellor made’.
Read more »
Kwasi Kwarteng: We stopped consumer spending collapse'That is not the government's policy at all' Gareth Bacon MP on trickle-down economics and stimulating economic growth. politicslondon |
Read more »