“We need a new approach for a new era, focused on growth,” he stated.
Global currency traders immediately started relinquishing their holdings of the Pounds Sterling for the United States Dollar and other currencies to avoid impending doom expected to hit the British Pound in the days ahead.
It is impossible to grow the economy as predicted by Kwarteng when prices of crude oil and other commodities remained high due to Russia’s invasion of Ukraine.
Also, with the United States Dollar trading at 1.1031 to the Pounds Sterling after plunging to 1.03325 on Monday, the cost of importing goods from the United States and buying goods quoted in U.S. Dollars will impact whatever money the Chancellor plans to put in the pocket of British people.
Similarly, exports from the United Kingdom would be cheaper for holders of foreign currencies and affect the profit of export-dependent businesses.
Basically, global investors are worried external factors would disrupt U.K policy given the current global happenings. Experts have started predicting that inflation could jump above 10.1% recorded in July, except the Bank of England called an emergency meeting ahead of the scheduled November 3 policy meeting to raise interest rates to curb jump in inflation predicted to result from Kwarteng policy.
