FTSE 100 falls 0.8% as pound crashes
The Pound Sterling dropped today to an all-time low of $1.07 following the announcement by newly appointed Chancellor of the Exchequer (finance minister) Kwasi Kwarteng on Friday of a plan to combat inflation by making the UK's biggest tax cuts in 50 years while increasing government borrowing and spending.
The UK is experiencing the highest inflation of any G7 country, and the pound has lost 21% in value so far in 2022.
Although Bank of England Governor Andrew Bailey today ruled out an emergency interest rate increase, markets anticipate an increase when the BOE Monetary Policy Committee next meets ijn November.
Later today in a move to reassure markets, Mr. Kwarteng said he will present on 23 November a plan to control debt.
Will American tourists flock to the UK this fall and winter? Stay tuned.
