a volatile start to the week for the pound and the uk. the early morning plunge yesterday in sterling s value to unprecedented depth against the dollar impacts petrol, food prices, mortgage costs, and the wider economy. what are you going to do about the turmoil on the markets this morning, sir? the chancellor remain tight lipped. i m not going to make any comment now. thank you. but it was his mini budget and subsequent comments over the weekend about going further with tax cuts and borrowing which had spooked international markets confidence in liz truss new government. the problem is that nobody knows whether we can afford it or not. and so the market is pricing in the possibility that this is a big, you know, experiment that may backfire. to give you a sense of how dramatic a fall the pound has taken, in 2007 before the financial crisis it was on average $2 to a pound. but yesterday it had tumbled to almost $1 to £1 parity.
good morning. banks and building societies have withdrawn some of their mortgage deals because of the volatility on global markets. interest rates are expected to rise significantly over the coming months with analysts predicting they could edge up towards 6% next year. what s caused it? well, the chancellor s mini budget last week has spooked the markets. it has been followed by a dramatic fall in the value of the pound. yesterday it dropped to a record low against the us dollar almost to parity. though, as you can see, it did rally later, to $1.07. and this morning, the pound is at $1.08. so, let s take a closer look at what that could mean for our daily lives. here s vincent mcaviney. a volatile start to the week for the pound and the uk. the early morning plunge yesterday in sterling s value to unprecedented depth against the dollar impacts petrol, food prices, mortgage costs, and the wider economy. what are you going to do about the turmoil