The International Monetary Fund has warned that the UK’s Mini Budget could have serious negative economic consequences, and is recommending against its implementation.
In a statement yesterday (27 September), the global financial institutional said that due to "elevated inflation pressures", it did not recommend "large and untargeted fiscal packages at this juncture". The body warned that the tax cuts could lead to fiscal policy crossing purposes with monetary policy and added that "the nature of the UK measures will likely increase inequality". The market has continued to respond poorly to last week's Mini Budget, as the mass sell-off of gilts has continued in response to the uncosted borrowing planned by Chancellor Kwasi Kwarteng. Market Movers...
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