According to the website of Singapore Lianhe Zaobao on the 27th, since the British Prime Minister Tras took office, the total losses of the British stock and bond market have been at least US$500 billion.
report quoted Bloomberg as saying that when Tras took office, the British economy was at risk of recession. The new fiscal policy issued by the Trass government further triggered anxiety, leading to a serious cross-asset sell-off, and the pound fell to a new low in 37 years.
British Prime Minister Trass' data map
reported that outsiders speculate that the Bank of England may take urgent actions in the near future. BoE chief economist Peel said on the 27th that after the Chancellor of the Chancellor Kwoten's tax cut plan caused turmoil in the financial market, the central bank may "significantly" hike at its next meeting in November.
Senior analyst at a financial services company believes: "Due to concerns about the economic outlook and the direction of the policy of the Trass government, people's confidence in the UK has been impacted... Only by recovering tax cuts and reducing expenses can we clearly restore optimism, but the government is stubborn."
It is reported that British Chancellor Kwoten launched the largest tax cut in half a century on the 23rd, including the cancellation of the plan to raise corporate tax to 25%, the cancellation of the highest tax rate of 45%, and significant reduction of stamp duty. Kwoten said that the entire tax cut plan will reduce fiscal revenue by £45 billion by the fiscal year 2026-2027; but he pointed out that the new tax cut plan will enable the UK economy to grow by 2.5%, breaking away from the previous vicious cycle of low growth and tax hikes.
Source: Reference Message Network
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