The value of the British pound has plummeted in the wake of new chancellor Kwasi Kwarteng’s tax-slashing, borrowing-fuelled “mini-Budget”, inviting speculation that the Bank of England (BoE) could be forced to step in to make an emergency adjustment to interest rates.
Dropping by almost five per cent to $1.03 when the Asian currency markets opened on Monday morning, the pound is now at an all-time low against the US dollar as investors react against Mr Kwarteng’s strategy to drive growth, suggesting they believe Britain’s finances will be stretched to breaking point by a plan the Labour Party has characterised as “reckless gambling”, an opinion shared by many economists and even some Conservative MPs.
