Tuesday, November 29, 2022

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Pound: Ex-BoE MP says Truss tax cuts are behind market turmoil

Liz Truss and Kwasi Kwarteng’s mini-budget was the “original sin” that first spooked markets, a former Bank of England (BoE) chief has said.

Sir Charlie Bean, the former Deputy Central Bank Governor, told BBC Radio 4 today Program that the ongoing turmoil in markets is due to the government’s proposed “unfunded tax cuts” and the “looming prospect” of further medium-term measures.

His comments come after the BoE announced that its emergency relief operation to protect it would end this week.

BoE Governor Andrew Bailey said in Washington yesterday that there could be no further support beyond Friday and it was up to affected funds to rebalance their holdings.

“My message to the funds involved – you now have three days. You have to work it out,” he said.

His comments sparked another fall in the pound against the dollar to its lowest since September 29.

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