This episode reflects on recent economic policy changes by the UK Government in its recent mini budget. Market reaction has been critical and this has resulted in lowering the value of the currency. Has the UK taken a big gamble with their economic policies? Is it one spin of the roulette wheel to go for growth? Markets think it looks like this given their response. The International Monetary Fund has also been critical of the UK economic policies. It is unusual for the IMF to rebuke a G7 economy. Listen to find out more.
- Fiscal v Monetary Policy Conflict
- Fall in pound against the dollar and other currencies making imports more expensive
- Inflationary pressures increased through fiscal policy
- Central Bank pushing interest rates higher increase cost for everyone
- Increasing Government Debt
- Higher earners have tax reduced which was unexpected while not giving targeted support for those with the greatest need
- IMF Rebuke