The British pound fell to its lowest level against the dollar in 37 years The British pound fell to its lowest level against the dollar in 37 years

The British pound fell to its lowest level against the dollar in 37 years

The British pound fell to its lowest level against the dollar in 37 years British financial markets were shaken, on Friday, by the impact of the pound sterling against the dollar falling to its lowest level in 37 years. This decline comes after a set of measures and decisions announced by the new government to confront inflation in the country.  The British pound fell on Friday to below $1.10, near its lowest level in its history, in light of a package of measures announced by the government to combat inflation, which raised investors' concerns about the state of Britain's public finances at a time when the economy is heading towards a recession.  In the face of a dollar that benefits from the resilience of the American economy and its being a haven currency, the pound sterling fell 2.56% to $1,0972 around 14.25 GMT, a level it had not reached since 1985 when it recorded $1,0520, the lowest level in its history. .  On Friday, the new Finance Minister, Kwasi Quarting, announced historic tax cuts and massive increases in borrowing, in an economic agenda that surprised financial markets, with the free fall of British government bonds.  These measures come just a day after the Bank of England raised interest rates to 2.25%, and warned that inflation could reach 11% this year.  The British minister hopes his policies will boost growth and break the "stagnation cycle", although some fear that the amount of spending could put the pound under additional pressure.  The opposition Labor Party called the British minister's plans a "desperate gamble", while the Institute for Fiscal Studies said the tax cuts were the largest since the 1972 budget.

British financial markets were shaken, on Friday, by the impact of the pound sterling against the dollar falling to its lowest level in 37 years. This decline comes after a set of measures and decisions announced by the new government to confront inflation in the country.

The British pound fell on Friday to below $1.10, near its lowest level in its history, in light of a package of measures announced by the government to combat inflation, which raised investors' concerns about the state of Britain's public finances at a time when the economy is heading towards a recession.

In the face of a dollar that benefits from the resilience of the American economy and its being a haven currency, the pound sterling fell 2.56% to $1,0972 around 14.25 GMT, a level it had not reached since 1985 when it recorded $1,0520, the lowest level in its history. .

On Friday, the new Finance Minister, Kwasi Quarting, announced historic tax cuts and massive increases in borrowing, in an economic agenda that surprised financial markets, with the free fall of British government bonds.

These measures come just a day after the Bank of England raised interest rates to 2.25%, and warned that inflation could reach 11% this year.

The British minister hopes his policies will boost growth and break the "stagnation cycle", although some fear that the amount of spending could put the pound under additional pressure.

The opposition Labor Party called the British minister's plans a "desperate gamble", while the Institute for Fiscal Studies said the tax cuts were the largest since the 1972 budget.

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