The British pound stabilized Tuesday as U.K. authorities tried to ease investor concerns after the biggest tax cuts in 50 years sent the currency tumbling to a record low the previous day.
LONDON — The British pound stabilized Tuesday as U.K. authorities tried to ease investor concerns after the biggest tax cuts in 50 years sent the currency tumbling to a record low and prompted some businesses to predict a devastating combination of a weak currency and rising interest rates.
“We must be confident in the stability of the U.K.’s economic framework,” he said at the Barclays-CEPR International Monetary Policy Forum. “There is no rate increase today and speculators will enjoy the prospect of two months of Bank of England inactivity if the statement is taken at face value,” said Alastair George, chief investment strategist at Edison Group.
Shai Weiss, chief executive of Virgin Atlantic, urged new Prime Minister Liz Truss to make the “difficult decision” of trying to boost the currency’s value. Some economists warn that the pound could reach parity with the dollar later this year for the first time.
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