What will be the fallout after sharp drop in sterling? | Inside Story

The British pound is struggling to hold value against the US dollar after hitting an all-time low.
The fall is raising concerns about the UK's economy and its appeal to international investors.
The new British government unveiled major tax cuts based on borrowed money, and many are concerned about the amount that is needed.
That has led to days of volatility in the value of sterling and undermined its status as a reserve currency.

What is the fallout on an already struggling economy, both in the UK and outside?

Presenter: Hazem Sika

Guests

Vicky Pryce, chief Economic Adviser at the Centre for Economics and Business Research

Jonathan Lis, Political Commentator

Brian Lucey, Professor of International Finance and Commodities at Trinity Business School


#GBP #GBPUSD #BritishPound #Sterling #LizTruss #UKCostOfLiving #UKEconomy #InsideStory

[philipwood]

the pound has been falling for a long time before this latest redistribution of wealth.

[darkbrother]

It is time to give a different political party a chance to run the country like adults with responsible fiscal policy. A trickle down financial experiment have no place in government during a precarious time such as this, when the common people are sandwiched in between a punishing inflation and a brutal recession. Liz Truss needs to admits that she was wrong and fix this mess now.

[millertas]

We often hear 'Now is not the time' in reference to such things as after a disarster when 'climate change' was a contributing factor. Now is NOT the time to give wealthy people tax cuts.

[qanljoayanjamayousuf]

This what u get when u vote for Convenience they only look after rich friends over and over again while they lie to poor

[Bilaj]

Now the world is in financial pandemic

[AbuBakr]

They sanctioned Russia, but their economy suffers. How weird this is

[st.george]

Is it not too early, normally these things take months to show any sign of change, this took minutes.

[georgiivanovkodinov]

Where do you find these guests? Where are the experts?

[yaqootmir]

The Brit pound cannot be a reserve currency period. It is a has been country way past its shelf life as a power.

[realrippernow]

ever since i was born this this first-time I hear of the British pound

[yutakago]

UK is following Sri Lanka and Greece footsteps to bankruptcy.
High government spending = increase government debt.
Lower tax = reduce government income.
When both policies are implement, it is the first step to bankruptcy. The currency will lose its value and UK will default on its debt.

[wach]

Putin makes more economic sense than Truss... What madness.

[abstract_duck]

Could be hot potato politics ... when a party doesn't want to remain in power since economic outlook isn't looking all that well ... it would be far more beneficial to hand the opposition all the mess and criticize them the next next election once everyone forgets who was behind the mess

[daisyseptimus]

Soon there will be no more G7 but less

[kaizersouza]

Keep printing more of those toilet paper currency backed by nothing.🤣🤣🤣🤣🤣🤣🤣🤣

[shaf]

The need to change the picture on the note ASAP and don’t treat UK economy similar to Africa

[hansclimaco]

Uhm no, why travel there. They say lower pound means its cheaper for tourists, but no becos that is assuming the amount is the same, so what happens is if i pay 1 pound before and that cost me 1.2usd but now i have to pay 1.5gbp even if gbpusd is 1 then it means i pay more cos that is now 1.5usd.

[juliesimoneau]

pain for poor and cut tax for others. democraty definition: "don't matters voters".

[paul-brfs]

she is talking about re mortgaging a lot of that is used to release equity as the interest rate has bin too low to long no one realises where interest rates need to be to have true balance of finance saving to loans but if the £ is better for trade +balance to tell if this works it will take 6 months to a year . the understanding most miss is with higher interest it means more return on savings and investment return prompting more ease to get investment the bond market is always jittery as more country's around the world and west produce budgets it will look more to the norm or show vast differences .
the problem is labour needs to come up with proper costed things and to gain credibility they will need to say how they will recover if things don't work the we will do diferent this is what we will do but they have no maths to back it up

[skyking]

It looks to me like someone somewhere torpedoed this brand new Conservative Government. After all, isn’t it just SENTIMENT, that pulled the pound down.