British Prime Minister Truss defended his fiscal package on Tuesday, saying the tough economic environment needed to be addressed.
In an interview with BBC Radio, the Prime Minister said: “We are facing a very, very difficult economic environment at the global level. It means making a decision,” he said.
The prime minister has argued that it is not the time to roll back policies and that tax increases make the UK more likely to slip into a recession. “The government did the right thing. This is the right plan,” he said of his own economic policy.
It is the first time a prime minister has spoken out regarding the turmoil in financial markets since Finance Minister Kwartengu unveiled a large unfunded tax cut plan.
The pound fell once more on the 29th. At one point, the pound dropped 1.2% to $1.0763. Earlier in the day, the currency was tumbling between regarding $1.05 and $1.09 following the Bank of England (BoE) announced it would buy long-term bonds.
After the Prime Minister’s remarks began, the UK bond market fell further. The 10-year bond yield temporarily rose 21 basis points (bp, 1 bp = 0.01%) to 4.22%.
Original title:Truss Says UK Tax Cuts Are the ‘Right Plan’ Amid Market Rout (3)、UK Bonds Extend Slide After Truss Defends Fiscal Plans、Pound Resumes Fall as UK Government Holds Firm On Fiscal Plans、Truss Stands by Tax Cuts and Says UK Faces Economic Pressure (1)、Truss Stands by Fiscal Package, Says UK Faces Economic Pressure(excerpt)
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