Banks urge Kwarteng to act now with November budget ‘way too far’



The pound fell back into the red after two major interventions last night reignited investor concerns over the UK’s tax cut budget.

In an extraordinary development, the IMF has urged Prime Minister Liz Truss to reverse her economic policy – ​​in particular highlighting the decision to scrap the higher income tax rate.

Rating agency Moody’s also warned that the policies risked “permanently weakening the UK’s debt affordability”, in the strongest suggestion yet that the country faces a downgrade. his credit rating.

The pound, which slumped to an all-time low against the dollar earlier this week, fell back below $1.07.

5 things to start your day

1) IMF urges Truss to reverse top-rate tax cut in rare intervention Highly unusual move by global lender of last resort condemned by top Tories as it adds to pressure on PM and Chancellor

2) Building societies under pressure as loan costs soar Smaller lenders are more exposed to fluctuations in wholesale interest rates than large, first-tier banks, which lend from their deposits.

3) Bank reports ‘significant’ response to turmoil BoE Chief Economist Huw Pill spoke as long-term borrowing costs hit their highest level since 2002

4) Job cut fears as MailOnline and Daily Mail merge operations It comes as the publisher attempts to forge a digital future for overlapping and frequently competing titles.

5) Christmas shopping chaos looms as Royal Mail staff plan 19-day walkout Union leaders have launched a significant escalation in their labor dispute with Royal Mail, warning of serious disruption to deliveries

What happened overnight

The British pound fell again this morning, falling nearly 1pc against the dollar to $1.0634.

Asia resumed its downward trend, with Tokyo, Hong Kong and Seoul down more than 2%, while Shanghai, Sydney, Singapore, Wellington, Taipei, Manila and Jakarta were also down.

coming today

  • Economy: BRC Store Price Index (UK), Crude Oil Inventories (US), Pending Home Sales (US), Gross Domestic Product (US)
  • Company : Boohoo, Everyman Media (Acting)

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