British Deputy Chancellor of the Exchequer Chris Phillip played down the significance of the historic collapse of the British pound and government bonds, saying that yields were about the same as in the United States. Reuters reports that.
The British pound fell to $1.09 yesterday – down 3.6 per cent – after the British government presented a new economic growth plan, which dismayed international investors.
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It ranks as the lowest value against the dollar in 37 years, after British money had its worst day ever as the words of British Chancellor of the Exchequer Kwasi Quarting began to slide in the markets.
“Let’s be clear, government interest rates are about the same as in the United States,” said Philip. “When you talk about the dollar, admittedly, this currency has proven to be very strong against the euro and the yen, for example.”
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That’s while the pound has fallen by as much as 11 percent in the past three months, making it the worst performing major currency. Against the euro, the pound also reached its lowest level ever since January 2021.
Minister Kwarteng will cut taxes to boost the economy again. This includes income tax and home purchase tax. There will also be energy subsidies for households to cut gas and electricity bills, which will cost the UK around €60 billion.
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