The Pound has plummeted to a fresh 37-year low against the dollar ahead of the Chancellor’s mini-budget today.
Sterling dropped below $1.12 against the backdrop of a new low for consumer confidence, while FTSE 100 fell early.
The pound has been on a poor recent run, with it announced this week the UK borrowed more than double it was expected too in August. The Bank of England said yesterday the UK is likely already in recession.
The new low is the first time it has dropped below $1.12 since 1985, and comes ahead of Kwasi Kwarteng’s financial statement today.
Chancellor Kwarteng is expected to announce a cut in stamp duty and a reversal in the national insurance increase.
He is also set to announce cuts including the planned increase in cooperation tax and ending the cap on bankers’ bonuses.
The raft of changes, including at least two ‘rabbit out of the hat’ policies.