The pound sank to its lowest level ever in early trading, as markets continue to feel the heat from the tax-slashing mini-Budget.
The currency dived as much as 4.85% to an unprecedented $1.0327 , extending a 3.61% dive from Friday, when Chancellor Kwasi Kwarteng unleashed historic tax cuts, and the biggest increase in borrowing since 1972 to pay for them.
Shadow Chancellor Rachel Reeves said she was incredibly worried about the fall in the pound overnight, saying it put pressure on the Bank of England to raise interest rates.
started my career as an economist at the Bank of England and like everyone else I’m incredibly worried about what we’ve seen, both on Friday with market reactions to the chancellor’s so-called mini-budget, and also the reactions overnight,” Rachel Reeves told Times Radio.
