The pound fell under $1.09 after Kwasi Kwarteng delivered his growth-focused mini-budget with consumer confidence at a record low and markets under pressure after more big interest rate rises.
Billions of pounds of increased spending and tax cuts came in the chancellor’s statement, but economists have warned the impact for inflation could result in rates having to stay higher for longer. Investors moved out of UK government debt after the speech, sending yields sharply higher, with two-year government borrowing costing it almost 4%.
Earlier today it emerged that GfK’s long-running consumer confidence index fell five points in September to minus 49, the worst score since records began in 1974.
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