Las crisis de la libra esterlina infographic
Graphic shows changes in exchange rates of Britain’s pound sterling since 1960.
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ECONOMÍA

La libra cae a un mínimo histórico

By Duncan Mil

September 27, 2022 - A tres semanas de iniciar su mandato, la primera ministra británica Liz Truss lucha por adelantarse a los acontecimientos cuando la reacción del mercado ante su plan de incrementar el endeudamiento gubernamental para pagar recortes fiscales ha lanzado a la libra a un mínimo de todos los tiempos.

On Monday (September 26, 2022), the pound plummeted to $1.033 to the dollar but rallied slightly later.

Chancellor Kwasi Kwarteng issued an emergency statement late Monday promising a fresh package of supply-side reforms over the coming weeks and a fully costed “fiscal plan” on November 23 to get UK debt levels falling.

The economic turmoil set Conservative MPs’ nerves jangling, fearing their party’s reputation for sound financial management is now at serious risk.

“Very worried,” said one of the many Tory MPs who backed Truss’ opponent, Rishi Sunak, in the leadership contest. “It’s the effect on interest rates that scares the bejeezus out of me. If you think things are bad now, just wait till we see home repossessions.”

“It’s worse than Black Wednesday,” said another Sunak-backing Tory MP, referring to the sterling crisis of September 1992. “This is self-inflicted and without a mandate, whereas at least [Black Wednesday] was perceived as a bid to manage a crisis.”

One former minister who backed Truss in her leadership bid said the decision not to publish official economic forecasts alongside last week’s tax cuts was “a bit of an own goal.”

“The Chancellor should have set out the fiscal position last week,” the MP said. “Markets hate uncertainty.”

“You can’t just borrow your way to a low-tax economy,” former Tory Chancellor George Osborne told Channel 4 News. “Fundamentally, the schizophrenia has to be resolved -- you can’t have small-state taxes and big-state spending.”

Sources
PUBLISHED: 27/09/2022; STORY: Graphic News; PICTURES: Getty Images
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