A weak pound makes it more expensive to buy imported goods and risks pushing up the rising cost of living even further.
Imports of commodities priced in dollars, including oil and gas, are also more expensive.
Investors are now predicting that interest rates could more than double by next spring to 5.8% from their current 2.25%, to curb high inflation, which is expected to be fuelled by the huge tax cuts announced in Friday's mini-budget. "Sterling has fallen because market traders have been frightened by the government's policies, and I think they got further frightened by the sense over the weekend that this was only the first instalment of some tax cuts."
Paul Dales, chief UK economist at Capital Economics, said given the pound had fallen back since the statements from the Bank and the Treasury the markets "may well need more reassurance and some actual action", saying a change in policy from government or an interest rate hike from the Bank at an emergency meeting before 3 November may be necessary.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Bank of England says it will “not hesitate” to change interest rates if needs beBank of England says it will “not hesitate” to change interest rates if needs be 🔴 The Governor, Andrew Bailey, said the Bank is monitoring developments in financial markets” very closely”
Consulte Mais informação »
What to do with Scottish paper £20 and £50 notes as expiry date loomsScottish paper banknotes from Bank of Scotland, Clydesdale Bank, and Royal Bank of Scotland are being taken out of circulation and the deadline is just in a matter of days.
Consulte Mais informação »
Major plan to transform dilapidated bankIt has been 3 years in the making
Consulte Mais informação »
'We still need support': Glasgow school uniform bank makes plea ahead of winterA GLASGOW school uniform bank has made a plea to keep their service going as the cost-of-living crisis continues to put a strain on them.
Consulte Mais informação »
Lincolnshire food bank overwhelmed by demand from familiesMore Lincolnshire families are in need of help every week during the Cost of Living Crisis
Consulte Mais informação »