As a result of the markets’ response to the UK’s largest tax cuts in 50 years, the pound has reached a record low against the dollar.
The pound dropped to $1.0327 at one point, its lowest price since 1971, when Britain adopted the decimal system.
According to media sources, UK Chancellor Kwasi Kwarteng revealed the largest package of tax cuts in 50 years while praising a “new era” for the UK economy.
According to the BBC, proposed increases in corporate taxes have been dropped; while income tax and stamp duty on property sales will be reduced.
Concerns persist that the tax cuts and an increase in government borrowing would fuel rising inflation; and drive the Bank of England to boost interest rates even more.