LONDON: The British pound plunged to a 37-year low and stocks sank after the government delivered the most sweeping tax cuts since 1972, as economists warned that the ambitious plan was unsustainable at a time when inflation is rampant.
The plan, which slashes levies on rich households and companies in a bid to boost economic growth, triggered a massive market selloff of the currency and bonds early Friday. The pound slipped below $1.10 for the first time since 1985, sliding 2% in addition to declines earlier in the week. The all-time low for sterling, also set in 1985, was $1.0520.
