Pound plummets to 37-year low after Kwarteng unveils 'growth plan' for economy

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Pound plummets to 37-year low after Kwarteng unveils 'growth plan' for economy
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The British pound has plummeted to a fresh 37-year low after Chancellor Kwasi Kwarteng unveiled his 'growth plan' for the economy

Equity markets were also particularly downbeat, with the FTSE 100 plunging to its lowest in two months.

It comes after the Bank of England launched another 0.5 percentage point interest rate hike to 2.25% on Thursday and warned the UK could already be in a recession.Kwasi's big giveaway: Chancellor slashes income tax, stamp duty and duty rates on beer and wine in mini-budgetHigher rate of income tax axed for top earners and 1p cut for all amid biggest tax cuts since 1972

The central bank previously projected the economy would grow in the current financial quarter but said it now believes Gross Domestic Product will fall by 0.1%, meaning the economy would have seen two consecutive quarters of decline - confirming that the UK is in a recession. Chris Turner, global head of markets at ING, said: "Typically looser fiscal and tighter monetary policy is a positive mix for a currency - if it can be confidently funded.

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