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Thursday, September 29, 2022

UK announces massive tax cuts and pound falls

value of pound sterling in regard of U.S. Dollar collapsed this friday Less seen since 1985After the government of the British Prime Minister, liz trussAnnounced aggressive tax cuts worth 45,000 million pounds (50,800 million euros).

UK currency fell 1.97% against the dollarup to $1.1041, 1.11% against the euro, up to 1.1320 Euro, and 1.54% against the yenup to 157.7900 yen.

British Chancellor of the Exchequer, half quartenge.t.c Deduction in the highest category of income tax45% to 40%, one mark reduction in the lowest section, and canceled the planned increase in corporate tax, among other measures. In his plan to boost the economy, the minister did not pursue investment cuts and assured that he intended to reduce public debt over the “medium term”.

Fall in the stock market and worry among experts

As the pound fell in money markets, Britain’s 10-year bond yield rose 0.27 per cent to 3.77%. Conversely, the stock market suffered after the announcement, and London stock market fell 2%In line with the red figures for the rest of Europe.

The government tax cut comes a day after bank of england Increase your interest rates by 0.5 pointsup to 2.25%, warning that The British economy may have entered recessionProjecting that GDP will fall 0.1% between July and September has been the same as in the previous three months.

The financial program of the truss is “largest tax cut since 1972”, Broad Paul Johnson, director of the influential “think tank” Institute for Fiscal Studies (IFS), compared this Friday’s announcement to the economic plan that the then prime minister, conservative Edward Heath, had deployed in the early 1970s. ,That budget is now known as the worst which is in existence in modern times. I hope, frankly, that it works out much better,” Johnson said.

This afternoon, the London Stock Exchange was down more than 2%, in line with red numbers in the rest of Europe. For CMC Markets Analyst Michael Hewson, The market looks at the truss measures “with concern”, Because of the possibility that this exacerbates inflation and makes it even more difficult to manage.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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