A photograph released by the BBC, taken and received on September 25, 2022, shows British Chancellor of the Exchequer Kwasi Kwarteng during an appearance on the BBC’s political television program “Sunday Morning” with journalist Laura Kuenssberg.
(AFP via Getty Images)
The British pound fell to a record low against the US dollar yesterday, even as the Bank of England warned that interest rates could be raised “as much as necessary” to control inflation.
Amid turmoil following new chancellor Kwasi Kwarteng’s mini-budget on Friday, in which he announced controversial £45bn worth of tax cuts, including scrapping the 45p levy, two UK lenders they temporarily withdrew their mortgage deals for new customers.
“After last week’s [Bank of England base rate hike to 2.25 per cent] and the subsequent government mini-budget, we continue to see how the market response develops,” Skipton Building Society said in an email to brokers.
The statement added: “In response, we will be temporarily withdrawing our new range of business products with immediate effect.” Virgin Money also withdrew mortgage offers for customers.
Chancellor Kwarteng will unveil the government’s “fiscal plan” on November 23, the Treasury said amid market panic over the loan-fuelled tax cut.
The government said the statement would include details on the new approach to borrowing, spending and tax collection rules, including a pledge to ensure debt falls as a share of GDP over the “medium term”.
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Kwarteng faces major market turmoil after a disastrous day for sterling
Kwasi Kwarteng faces major market turmoil over his tax cut mini-budget as a disastrous day for the pound saw Labor take its biggest lead in the polls over the Tories during more than 20 years.
The Treasury moved to liquidate markets with the promise of a budget next spring as it fell to its lowest level against the dollar in at least half a century on Monday.
Read Amy Gibbons’ full story here:
Kwarteng faces major market turmoil after a disastrous day for sterling
The Treasury moved to settle markets with the promise of a budget next spring as the pound fell against the dollar on Monday.
Maroosha Muzaffar September 27, 2022 6:10 am
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Starmer targets Tories as Labor buoyed by promising poll
Sir Keir Starmer will be buoyed by promising polls for Labour, as he accuses the Tories of losing control of the economy and vows to pull the UK out of “this never-ending cycle of crisis”.
He will quote Sir Tony Blair to dub Labor the “political wing of the British people” as a new YouGov poll suggests the party has opened up a 17-point lead over the Tories, the biggest since the company began surveying in 2001.
Read Amy Gibbons’ full story here:
Starmer targets Tories as Labor buoyed by promising poll
The Labor leader will quote Sir Tony Blair to dub his party the “political wing of the British people”.
Maroosha Muzaffar27 September 2022 06:00
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ICYMI: Shadow chancellor ‘very concerned’ about pound slump after mini-budget
Rachel Reeves says she is “very concerned” about the fall in the pound after Kwasi Kwarteng’s mini-budget announcement, warning it will worsen the cost of living crisis.
Sterling: Shadow chancellor says currency’s fall ‘very worrying’
Rachel Reeves says she is “very concerned” about the fall in the pound after Kwasi Kwarteng’s mini-budget announcement, warning it will worsen the cost of living crisis. Speaking to Sky News, the shadow chancellor called on the government to get on with it. a “credible plan” for public finances, stating that the failure of Mr. Kwarteng to do so has scared the market. “I started my career at the Bank of England, and I have to say I’ve never seen anything like this before … the pound is at an all-time low against the dollar,” he said. Sign up for our newsletters.
Maroosha Muzaffar27 September 2022 05:50
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Bank of England forced to step in as pound crashes to record low after ‘disastrous’ mini-budget
The Bank of England was forced into emergency intervention on Monday, warning it would not hesitate to raise interest rates “as much as necessary” after the pound plummeted in the wake of Kwasi Kwarteng’s mini-budget.
Sterling fell to an all-time low against the US dollar, falling more than 4% to just $1.03 before recovering some ground.
Read the full story by Rob Merrick and Adam Forrest here:
The Bank of England says it will raise rates “as much as necessary” after the pound’s defeat
Emergency action fails to shore up pound, Liz Truss faces political crisis after just three weeks in power
Maroosha Muzaffar 27 September 2022 05:40
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Pound rises more in Asian trade
The British pound rose in Asian trading today after hitting a record low against the dollar, the Financial Times reported.
The report said sterling rose 0.9 percent in morning trade to $1.0776, just a day after a morning drop sent the currency nearly 5 percent to an all-time low of $1.035.
Maroosha Muzaffar27 September 2022 05:30
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How will the falling pound affect the cost of living crisis?
The fallout from the revelation of Kwasi Kwarteng’s tax cut economic plan has seen the pound sterling plummet in value, hitting an all-time low against the US dollar.
In light of this, those already struggling to make ends meet amid a cost-of-living crisis will be asking the same question: What does this mean for my pocketbook?
Watch the video explaining how this could affect households here:
How will the falling pound affect the cost of living crisis?
The fallout from the revelation of Kwasi Kwarteng’s tax cut economic plan has seen the pound sterling plummet in value, hitting an all-time low against the US dollar. In light of this, those already struggling to make ends meet amid a cost-of-living crisis will be asking the same question: What does this mean for my pocketbook? Market confidence has been hit by the government’s biggest tax cuts in 50 years, sending the pound down more than 4% to the equivalent of just $1.03. This video explains how this could affect households. Subscribe to our newsletters.
Maroosha Muzaffar 27 September 2022 05:20
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Kwasi Kwarteng to unveil new tax rules in November amid market panic
Chancellor Kwasi Kwarteng will unveil the government’s “fiscal plan” on November 23, the Treasury has said amid market panic over the loan-fueled tax cut.
The government said the statement would include details on the new approach to borrowing, spending and tax collection rules, including a pledge to ensure debt falls as a share of GDP over the “medium term”.
Read Adam Forrest’s full story here:
Kwasi Kwarteng to unveil new tax rules in November amid market panic
Chancellor to set medium-term ‘fiscal plan’ but no proper budget until spring 2023, Treasury says
Maroosha Muzaffar September 27, 2022 5:10 am
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Lenders are withdrawing mortgages from sale amid market volatility following the fall in the pound
Three lenders have temporarily withdrawn mortgages that include fees for new customers in response to market volatility caused by the fall in the pound.
According to the Reuters news agency, Halifax, the UK’s biggest mortgage lender, will withdraw the products until it figures out what interest rates to charge.
Virgin Money and Skipton have reportedly followed Halifax’s move.
Read the full story here:
Lenders are withdrawing mortgages from sale amid market volatility following the fall in the pound
The Bank of England said it could raise the key interest rate to try to curb inflation
Maroosha Muzaffar September 27, 2022 4:57 am