The pound has hit a new 37-year low after the bonanza of tax cuts and spending measures in Kwasi Kwarteng’s mini-budget threatened to undermine confidence in the UK.
Sterling fell to $1.077 in early trading when Asia-Pacific markets opened after the weekend, closer to parity with the US dollar.
Chris Weston, the head of research at the brokerage firm Pepperstone, said the pound was “the whipping boy” of the G10 foreign exchange market, while the UK bond market was “getting smoked” thanks to Kwarteng’s £45bn debt-financed tax-cutting package.
“The funding requirement needed to pay for the mini-budget means either we need to see far better growth or higher bond yields to incentive capital inflows,” Weston said. Targets that the pound could fall below $1.05, for the first time ever, were being “liberally thrown around”, he added. » | Graeme Wearden | Sunday, September 25, 2022
Ha! Ha! Ha!. I could say: I told you so! We deserve all the pain we get! No! I am not being unpatriotic; on the contrary, I am being extremely patriotic. The dimwits of this country need to be brought to their senses asap.
This country is a medium-ranking European nation. Britannia no longer rules the waves. And probably never will again. Are we important as a nation? Of course we are! But we are no longer an imperial power; our Empire is gone, never to be resurrected. Get over it! These days, we need Europe; and Europe needs us.
People like Nigel Farage are not patriotic; au contraire, they are unpatriotic troublemakers. In fact, where is Nigel Farage when you need him most. He belongs in the stocks! He has caused so many Brits so much unnecessary pain with his vacuous talk. He shouldn't be allowed to get away with it.
This country belongs in the European Union. The absurd policy of Brexit needs to be reversed forthwith. – © Mark Alexander
