Is The UK On The Brink Of An Emergency Rise In Interest Rates As The Pound Plummets

26th September 2022

The UK budget with tax rates reduced and increases cancelled may have been good news for some but the markets disagreed. The pound fell to a fifty year low when trading in Asia opened this morning.

Inflation will rise and the many news sources are speculating we may see an emergency meeting at the Bank of England to decid on another fast rise in interest rates.

What does it all mean for business and consumers? Nothing good as prices will rise on imported goods including food. If an emergency further rise in interest rates comes forward mortgages, loans and credit will all rise even before the last rise has been put in place.

Here are some links to todays depressing press stories -

Guardian
What does the pound's slump mean for the UK and its consumers

Telegraph
Pound falls against every currency in the world after hitting all-time dollar low

Guardian
Pound's plummet underlines schoolboy error by Kwasi Kwarteng

Fortune
Pound continues fall in early Asia trading as embarrassment for Truss threatens to become crisis

Guardian
Pound hits all-time low against dollar after mini-budget rocks markets

BBC
Pound hits record low after tax cut plans