Banks pull mortgages from sale amid interest rate chaos

In a pointed reference to market demand for forecasts for the public finances from the independent Office for Budget Responsibility (OBR), which were not released by Kwasi Kwarteng, the Chancellor, when he announced plans to slash taxes last week, Mr Bailey said: “ I welcome the Government’s commitment to sustainable economic growth, and to the … Read more

Liz Truss’ honeymoon canceled as pound plummets and UK borrowing costs soar – POLITICO

Press play to listen to this article LIVERPOOL, England — As an inexperienced leader taking charge of a country in crisis, Liz Truss knew she needed to hit the ground running this month. But three weeks into her fledgling premiership, the new UK prime minister finds herself scrambling to stay ahead of events as last … Read more

Bank of England ‘monitoring financial markets very closely’ after pound hits record low against dollar

T he Bank of England has released a statement in the wake of the pound’s dramatic fall to a historic low against the dollar, saying it is watching developments in financial markets “very closely”. In the statement released on Monday afternoon, Governor Andrew Bailey also said the Bank would not hesitate to change interest rates … Read more

Bank of England urged to raise rates as markets bet on 6pc by next year

Gerard Lyons, economist at NetWealth and a backer of Liz Truss, said it is “down to the central bank to try and get ahead of the curve, to try and address the market concern”. I have added that Mr Kwarteng also needs to act. “He needs to reaffirm that tax cuts are only part of … Read more

What the falling pound means for your wallet

Further price rises in the UK could occur for future launches, should the dollar maintain or increase its strength. Prices that companies have to pay for essential ingredients will also climb, pushing higher costs on to consumers. Paul Davies, chief executive officer at Carlsberg Marston’s Brewing Company, suggested the fall of the pound may cause … Read more

Kwasi Kwarteng has gambled on revolution, but an inflationary spiral may still defeat him

Well. After this, no one will ever accuse Kwasi Kwarteng of “caution” or “managerialism”, so in that sense, he has achieved his goal from him. The new Chancellor’s “fiscal event” yesterday was hailed as the most radical of its kind in more than a generation. He unleashed a tax-cutting stimulus amounting to £45 billion per … Read more

Why the stamp duty cut won’t stop a catastrophic house price crash

Andrew Wishart, of the analysis firm Capital Economics, says: “The market reaction to the announcement suggests that mortgage rates of over 6pc are now a distinct possibility, which would leave house prices more overvalued than in 2007.” The stamp duty saving will help to increase buyers’ deposits because it must be paid upfront, Wishart says. … Read more

Mini-budget latest LIVE: Kwasi Kwarteng set to announce tax cuts for millions

K wasi Kwarteng has unveiled a mini-budget that delivers billions of pound worth of tax cuts – including a surprise move to scrap the 45% top rate of income tax paid by the UK’s wealthiest. The Chancellor announced sweeping moves intended to rev up the economy in the eagerly-awaited “fiscal event” on Friday morning. The … Read more