British pound plunges, bonds crash after government announces tax cuts
Sterling dipped as low as $1.1032 at 12:00 p.m. London time, around an hour after the measures were unveiled in the House of Commons.
The pound has been on a precipitous fall against the greenback this year, hitting levels this month not seen since 1985.
Friday’s measures were billed by the government as heralding a new era for the U.K. focused on growth, and included a mix of tax cuts and investment incentives for businesses.
Interesting, one of the main attractions of Brexit was to negotiate with the Common Wealth and the USA separate from the EU. The conservatives doing this missed the point economically. The US and UK are shifting to demand side econ. While the central Europeans are shifting to supply side econ. In rides the conservatives today with planned tax cuts out of the supply side econ playbook. Their timing is like wet toast and mud. Yum! No clue about economics.