There was quite a bit of kerfuffle with sterling at the end of September after the new UK government’s mini budget or fiscal event as it was styled.
The Financial Times reported that the pound whipsawed on the currency markets. Stalker had to run to the dictionary to look that one up. Basically though the markets dumped on the fiscal event engineered by the Chancellor of the Exchequer.
The Bank of England having to step in to secure the pensions investment funds the following week in order to avoid a collapse of that section of the financial markets in the UK, was basically emergency manoeuvres to shore up UK PLC.
Economics boffins have been basically scratching their heads at the double act of the new PM and her sidekick Chancellor. One motoring metaphor had the government standing on the accelerator, while the Bank of England hit the brakes.
The month of October has the capacity to bring more headaches for the new UK government team. It has to be hoped that there will be no more economic missteps that threaten not just the UK economy, but as the IMF have warned, a contagion that might spread to other global markets.
