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good pounding?!…..British Pound hits all time low against the US dollar….
Posted by: NewtonMP2100
Date: September 26, 2022 10:11AM
….as trading opened in Asia…


Bank of England says it won't hesitate to hike rates after pound falls to historic low

Sterling fell as much as 4.8% to trade below $1.04 in the early hours of Monday morning, extending losses from late last week.

The U.K. currency has since pared some of its losses, trading 1.3% lower at $1.0713, as analysts predict the Bank of England may need to raise interest rates more aggressively.

.....The Bank of England on Monday said it is monitoring financial market developments "very closely" after a dramatic morning of turmoil saw the British pound fall to an all-time low against the U.S. dollar.

Sterling fell as much as 4.8% to trade below $1.04 in the early hours of Monday morning, extending losses from late last week when Finance Minister Kwasi Kwarteng outlined the new U.K. government's so-called mini-budget.

The U.K. currency pared some of its losses through the session but extended its fall versus the dollar immediately after the Bank of England's statement.

Sterling was last seen trading 1.3% lower at $1.0713.

"The Bank is monitoring developments in financial markets very closely in light of the significant repricing of financial assets," Bank of England Governor Andrew Bailey said in a statement.

"The role of monetary policy is to ensure that demand does not get ahead of supply in a way that leads to more inflation over the medium term," Bailey said.

The BOE governor said the central bank's monetary policy committee would make a "full assessment" at its next scheduled meeting in November, "and act accordingly."

"The MPC will not hesitate to change interest rates as necessary to return inflation to the 2% target sustainably in the medium term, in line with its" responsibility, he added.

The announcement by Prime Minister Liz Truss' administration featured a volume of tax cuts not seen in Britain since 1972 and an unabashed return to the "trickle-down economics" promoted by the likes of Ronald Reagan and Margaret Thatcher.

The radical policy moves put the U.K. at odds with most major global economies at a time of sky-high inflation and a worsening cost-of-living crisis.

Fiscal plan

The U.K. Treasury on Monday afternoon said the government would set out its medium-term fiscal plan on Nov. 23.

Kwarteng requested the independent Office for Budget Responsibility set out a full forecast alongside the plan, the Treasury said.

To be sure, Friday's mini-budget was not accompanied by the usual economic forecasts from the OBR.

"The Fiscal Plan will set out further details on the government's fiscal rules, including ensuring that debt falls as a share of GDP in the medium-term," the Treasury said in a statement.

The government also intends to lay out supply-side growth reforms from next month, it added.



…….all time………..low……..?!



_____________________________________

I reject your reality and substitute my own!



Edited 2 time(s). Last edit at 09/26/2022 04:10PM by NewtonMP2100.
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Re: good pounding?!…..British Pound hits all time low against the US dollar….
Posted by: mattkime
Date: September 26, 2022 10:36AM
Apparently the dollar is quite strong right now.



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Re: good pounding?!…..British Pound hits all time low against the US dollar….
Posted by: chopper
Date: September 26, 2022 10:45AM
I know guys who are going to the IOM TT next year and are pre-paying for accommodations NOW.
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Re: good pounding?!…..British Pound hits all time low against the US dollar….
Posted by: Zoidberg
Date: September 26, 2022 11:19AM
time to buy stuff from amazon.co.uk



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Re: good pounding?!…..British Pound hits all time low against the US dollar….
Posted by: Acer
Date: September 26, 2022 11:24AM
Q. Is this good or bad?
A. Yes
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Re: good pounding?!…..British Pound hits all time low against the US dollar….
Posted by: mrbigstuff
Date: September 26, 2022 12:44PM
Are there some Britain based equities we yanks should be looking at?
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Re: good pounding?!…..British Pound hits all time low against the US dollar….
Posted by: Speedy
Date: September 26, 2022 09:33PM
Parity will soon be at hand. It wasn’t that long ago the $ was at 2.4 to the £.



Saint Cloud, Minnesota, where the weather is wonderful even when it isn't.
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Re: good pounding?!…..British Pound hits all time low against the US dollar….
Posted by: DeusxMac
Date: September 27, 2022 08:28AM
Buy up all that King Charlie memorabilia before the exchange rate changes!
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