![]() Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. We may also receive compensation if you click on certain links posted on our site. We may receive compensation from our partners for placement of their products or services. While we are independent, the offers that appear on this site are from companies from which receives compensation. All international money transfer servicesį is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions.Two-year British gilts are yielding more than 4.5 per cent on Monday. The yield on two-year government debt priced in pounds - a bond known as a gilt - jumped by its highest level in a decade on Friday, before beating that record on Monday. Traders are expecting an unprecedented 125-point hike when the Bank of England meets in early November. The sell-off in the pound is increasing the likelihood that the Bank of England will have to raise interest rates even more aggressively than it has been, to staunch the bleeding. "Loose fiscal policy during a period of high inflation means that will have to revalue lower," Rai said. And they're not wrong in terms of the policy response and the naivety of thinking that boosting demand rather than supply is how you deal with a supply-side shock." Strong chance of a further dropÄespite Monday's up-and-down ride, experts suggest the pound could well go lower still. "The British have decided that going back to the 1980s on steroids is the best way to go, and clearly the market is just saying, 'That's not going to work,'" said Rabobank strategist Michael Every. The seesaw ride speaks to just how uncertain investors are in the British government's ability to rein in inflation without collapsing its already sluggish economy. In the end, that didn't happen as the central bank merely put out a statement saying it "would not hesitate to change interest rates by as much as needed," which caused the pound to move down to about $1.06 US again. ![]() By the afternoon local time in London, the pound was just barely positive on the day, after speculation grew that the Bank of England migh announce an emergency, unplanned rate hike. When trading in Europe began, the pound began to recover. The early losses on Monday were mostly coming from trading in Asia. dollars since Feb. 25, 1985, when it was going for about $1.05 and Margaret Thatcher was in power. Prior to Monday, the pound hadn't been priced this low in U.S. The pound sold off heavily on the news, as traders expressed their doubts that the plan would work. "The Truss administration is rebooting the old Reaganomics playbook with large, unfunded personal/corporate tax cuts expected to drive supply-side investment and spur growth," said Bipan Rai, a foreign exchange analyst with CIBC. In the face of sluggish growth and sky-high inflation, the governing Conservatives plan to slash corporate and personal income taxes to their lowest level in half a century, while also borrowing more money to subsidize food and energy prices for consumers. pound down five per cent, just above $1.03 US, on Monday morning, the first trading day after Chancellor of the Exchequer Kwasi Kwarteng - the equivalent to Canada's finance minister - unveiled the government's plans to boost economic growth this year. government's plans to stimulate the economy by cutting taxes while borrowing more money to spend on programs. ![]() dollar since 1985 before bouncing back on Monday, as investors digest the U.K. The British pound fell to its lowest level against the U.S.
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