Sep 26, 2022 • 12M

Dawn Chorus: The bond vigilantes are back to take down Truss' gilt-edged tax cuts for the rich

Debt-funded tax cut plan for Britain's rich beggars belief of global investors; Pound hits record low, forcing Bank of England to consider more rate hikes; Some UK banks halt mortgage lending

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Bernard Hickey
Bernard Hickey and friends explore the political economy together.
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TLDR: So it turns out Liz Truss’ plan to borrow £45b to pay for tax cuts for Britain’s rich is not credible in the eyes of global investors. Now the new British PM faces an immediate financial crisis, which is rippling around the globe and weakening currencies such as the yuan and our own Kiwi dollar.

Paying subscribers can see more detail analysis below the paywall fold and in the podcast above.

UK Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng were all smiles with the excitement of their new roles on a factory visit a few days ago, but since then things have … escalated quickly. Photo: Getty Images

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