drop in the currency? drop in the currency? well, it certainly drop in the currency? well, it certainly has drop in the currency? well, it certainly has been drop in the currency? well, it certainly has been worrying i drop in the currency? well, it - certainly has been worrying when it plunged to those record lows this morning, of $1.03. really on a roller coaster ride downwards. it has recovered a little bit, as you say, but there are real concerns, and what this is is a loss of confidence in the government s economic management. simply, there are real concerns about the fact that these historic tax cuts, the like of which we have not seen for four decades, are simply unaffordable. and notjust that, they will fuel inflation, and that is the real worry. you mentioned that the costs of borrowing for the government have gone up and that is because the expectation is that the bank of england willjust have to keep raising interest rates to try to compensate for the government s p
highest interest rate, folks, not investors the central bank will keep higher rates until inflation comes down. home buyers mortgage rates well above 6% here, new home sells coming later this week to show us what s happening in the housing market with these higher rates. the british pound plunging to a new record low, falling more than 4% against u.s. dollar. cnn clarissa popping in live from london. i woke up to this headline, wow. this has been, what, predictions of the pound could plum met further here? yeah, christine, it was a brutal morning, not just the fact that it edged closer than ever towards record low, speed of the fall, an emerging market like move, disorderly. now stabilized gone from about 1.03 to the dollar up to 1.07. some significant stabilization,
sterling fell 4%, close to $1.03 it s since regained some ground to stand around $1.06. the fall in the pound threatens to further fuel inflation because it makes imports into the uk more expensive, and adds to the costs for british businesses. it also puts further pressure on the uk s finances, as the cost of borrowing for the government rises. markets are signalling they expect interest rates to rise further as a response to sterling s fall, with investors predicing interest rates could hit 4% by the middle of next year. the pound fell dramatically on friday after the government announced huge cuts to taxes and more borrowing. sirjohn gieve is a former deputy governor of the bank of england, and member of the monetary policy committee, the group that decide interest rates in the uk. he spoke about his concern this morning. i concern this morning. think i would be worried. thi bank, i think i would be worried. the bank, and indeed the government,
hours after a disastrous end to trading on friday, closing nearly 500 points down. the levels on friday were the dow s worst since november of 2020 stoked by investor worries of inflation and corrective action by the fed to control it. here in the uk, the pound keeps losing ground against the u.s. dollar, falling to a record low of just more than $1.03. you can see right now come off that low slightly there, but there are still fears that sterling could slide in the coming months. this comes following mini budget announcement coming from chancellor. the course of the pound depends on some degree what policymakers, fiscal or monetary do next. the chancellor doubled down on this interview on sunday saying
environmentalists. they love no guns. they don t want the police officers to have guns. that s their image. when i was over there in the u.k. last week. everyone i seems to talk to say they are paying extra to watch fox news over there and they agree with the american politics and agree with conservatives over here. what are the top issues of europeans now? look, i think that a lot of brits at the moment feel exactly the same challenges and concerns that are felt through the rest of europe. and, you know, today we have gotten extraordinary situation in our country where the pound is now collapsing against the dollar almost to put that in perspective. when i was a judge on america s got talent back in 2007, i think the dollar rate was 2.10. today as low as 1.03. this is a remarkable creed remarkable sea change.what thiss push people towards, i think, a