Sterling was triggered to a sharp decline against the dollar yesterday evening following BoE governor Andrew Bailey’s confirmation that the bank’s bond-buying scheme would end this week. He warned that the bank’s emergency intervention of a £65bn scheme to purchase government bonds would not be continued beyond Friday, issuing a clear message to the firms and funds involved that they have three days to “get this done”
This came after the Washington-based International Monetary Fund (IMF) criticised Truss’s government again, saying that the chancellor’s recent calls for tax cuts, plus the energy support package, made the BoE’s “battle against inflation more difficult.” The IMF said the Bank and Treasury are currently like “two people trying to steer a car in different directions”.
Meanwhile, Labour MP, Rachel Reeves said that the Chancellor is in a “dangerous state of denial” over the impact of last month’s mini-budget.
In the eurozone developments in the Ukraine war continue to unfold. Following Russia’s recent missile attacks on Kyiv, G7 leaders warn Russia of “severe consequences” if it uses nuclear weapons.
Today, US markets will see the release of key producer price index data for September.
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