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ABC News
ABC News
Business

What's happening with the British pound and what does it mean for Australia's economy?

The British pound has been in the headlines this week after it plummeted to a record-low value against the US dollar.

It's the latest strain on the UK economy, which is battling rising living costs, high inflation, and the looming threat of a recession.

It's all prompted the UK government to unveil massive tax cuts, but that's raised concerns from the Bank of England that it will only make inflation worse and force interest rates even higher, while the International Monetary Fund fears it will increase inequality in the country.

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