British Pound Falls To Record Low Against The Dollar after Biggest TAX Cut

Sakshi Education

As a result of the markets’ response to the UK’s largest tax cuts in 50 years, the pound has reached a record low against the dollar. Sterling dropped almost to $1.03 in early Asian trading before reclaiming some ground to hover around $1.07. In anticipation of a rise in borrowing, Chancellor KwasiKwarteng has promised additional tax cuts on top of the £45 billion plan he announced.
The Bank increased interest rates last week by.25% to 2.25% in an effort to lower inflation, which is at a 40-year high of 9.9%.
The rate rise, which brought rates to their highest level in 14 years, was the eighth in a row.
Some analysts, however, have hypothesised that the Bank may call an emergency meeting this week to raise interest rates once more.
A statement from the Bank of England was declined.
Interest rates may rise as high as 5.5 percent by the spring of next year, according to market observers.

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