“We had to take urgent measures for our economy to grow, for the UK to move, and also to deal with inflation, and of course that means making controversial and difficult decisions,” he told BBC radio, adding: “But I am willing to do it as prime minister because the important thing for me is that we get our economy going.
“This is the right planTruss told the BBC. Asked if it’s time to back down, she said: “No, it’s not.”
The British government bond yields rose moderately on Thursday and the pound sterling fell 0.5%, a $1.0797which raises your fall in September to almost 7% and its collapse so far this year to almost 20%. The European stock markets crash: the main declines are recorded in the Italian stock market which falls by 3%, followed by the Euro Stoxx 50 by 2.4%. For its part, the CAC 40 and the German stock market (DAX) lost 2.4%.
Truss defeated the former Minister of Economy Rishi Sunak, who promised to end “Treasury orthodoxy” with a new economic policy that reduced taxes and regulation, financed by extensive public borrowing to lift the economy out of years of stagnant growth.
The minister dismissed warnings from Sunak that his plans posed a threat to Britain’s economic position in the world, calling them “negative and declining language”.
However, his fiscal plan, presented on Friday by the Finance Minister Kwasi Kwarteng triggered a crisis of confidence in the governmentsending the value of the pound and government bond prices tumbling and rattling global markets.
Truss said his government would not change course and that will support its plan of 45,000 million pounds of cuts Unfunded taxes. He also announced that in the coming weeks he will detail all the reformssince the childcare costs to immigration, planning and financial regulation. A more comprehensive tax return on November 23 will detail the cost of borrowing and measures to reduce debt.
He also announced that there would be restrictions on access to social programs and will impose reforms on the 120,000 beneficiaries of the minimum income
The government of Liz Truss in United Kingdom plans to announce on Friday a welfare reform which will impose on the 120,000 beneficiaries of the minimum income who seek more hours worked, or their benefits will be reduced
The investors and economists they have said that they can’t wait another eight weeks for the detailsas borrowing costs are high and markets are volatile.
The IMF and Moody’s risk rating agency they advised the British government to review its plans because of the impact the measures could have on activity.
In addition to the risk that it entails for the pension funds, it is contemplated rising borrowing costs it has caused the withdrawal of the cheapest mortgage offers and a jump in interest rates on loans to companies.
The intervention of Bank of England had an immediate impact on lower bond yields on Wednesday, but investors still think it will raise rates by at least 1.25 percentage points, to 3.5%, by November 3, the date of its next scheduled ad.
Source: Ambito
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