The IMF has stepped in to warn the U.K. government

It really is a disaster. An economic policy written on the back of a beer mat after a good lunch! A winter of discontent is looming.

As a lifetime Conservative voter I am seriously unimpressed at the moment. When they were forcing Johnson out I was thinking at the time be careful what you wish for compared to this he was moderate.
They were also warned by Rhisi Sunak what might happen
I am no where as enlightened as some on here I know the dollar is very strong and the euro is also struggling as well but this seems utter madness

The pound has fallen even further.

This is a very serious situation. Surely someone in the Tory party has some influence? I also think that there must be personal culpability for permanently damaging an entire country in such a reckless foolhardy way.

Robert Peston

This from IMF is humiliating for Kwarteng and Truss: “Given elevated inflation pressures in many countries, including UK, we do not recommend large untargeted fiscal packages at this juncture, as it is important fiscal policy does not work at cross purposes to monetary policy”.

I have also noticed that many British retailers will no longer sell to overseas customers and was wondering why. Being as we pay the delivery costs it seems unreasonable. Not good for the economy.

Whitewavemark2

Robert Peston

This from IMF is humiliating for Kwarteng and Truss: “Given elevated inflation pressures in many countries, including UK, we do not recommend large untargeted fiscal packages at this juncture, as it is important fiscal policy does not work at cross purposes to monetary policy”.

The IMF is saying exactly what Richard Murphy has been saying for the past week or more. Ether they read his blog, or Richard isn't a lone voice?

The Bank of England's strategy and the Chancellor's are in direct conflict with each other. The BoE's is meant to be anti-inflationary and the Chancellor's is inflationary. ?

www.taxresearch.org.uk/Blog/2022/09/23/the-bank-of-england-and-kwarteng-are-at-war-with-each-other-that-can-only-end-in-tears/

They surely must do something before the conference next week?

I'm truly worried. I'm 71 still have a mortgage and the deal runs out soon. Never mind me, I can just manage, but what about those poor first time buyers about to get their dreams crushed? and all of us considering moving and so on -

chaos!

I have friends on basic benefits. Its all so wrong, wrong, wrong yet nothing seems to stop this madness.

The BoE has stepped in to try to calm the markets by buying government bonds.

It states that if market volatility continues it will bring material risk to the UKs financial stability.

Starmer has called for Kwarteng to review his tax cutting budget with some urgency.

One thing that the BoE is worrying about are the pension trusts which are under enormous pressure.

Oh dear, Truss and Kwarteng have managed in a matter of a few days to destroy the union. Scotland will be off, and I don't blame them.

The BoE has stepped in to try to calm the markets by buying government bonds.

And they are stopping for the time being their 'reverse QE'

I wonder if the BoE is doing this with the agreement of the Chancellor and PM, as it will be lumped in with the rest of the deficit as '/borrowing', or is the BoE doing it off its own bat?

Although the news story says that they intend to resell the bonds once the markets have calmed (in October) I'm wondering if either of those things will happen (calm or resale)

news.sky.com/story/bank-of-england-takes-action-to-restore-orderly-market-conditions-after-mini-budget-panic-12706827

MaizieD

^The BoE has stepped in to try to calm the markets by buying government bonds.^

And they are stopping for the time being their 'reverse QE'

I wonder if the BoE is doing this with the agreement of the Chancellor and PM, as it will be lumped in with the rest of the deficit as '/borrowing', or is the BoE doing it off its own bat?

Although the news story says that they intend to resell the bonds once the markets have calmed (in October) I'm wondering if either of those things will happen (calm or resale)

news.sky.com/story/bank-of-england-takes-action-to-restore-orderly-market-conditions-after-mini-budget-panic-12706827

I bet it is off it’s own bat. Still QE should help. I just hope if Kwarteng is still around in November, he doesn’t repeat the tax cuts as he is threatening to.

The most likely scenario will be to plunge the U.K. into austerity again. Like it helped so much during the first decade of Tory rule!

I think there are no words strong enough to express the distressing state of things. If we thought it was bad before, this is an all time low.
We have self serving narcissists at the head of government. Absolutely clueless. Liz Truss is a woman possessed.... with an obsessive need for attention and power... at any cost to the 4 countries.
I despair!
With a conservative government we have slowly but surely declined and we are on course to be the poor relation, not to mention a laughing stock, on the international platform.

I imagine a block of butter will be costing £5 before long!

Richard Murphy
@RichardJMurphy
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6m
It looks as if the Bank of England's intervention in the market this morning has failed - which is hardly surprising since it was riddled with absurd contradictions, almost as bad as those Kwarteng managed. The pound has fallen again....

I cannot be alone in being stressed beyond measure at what our country has become.
There is a surge on Twitter of people committing to vote for any party to get the Conservatives out by tactical voting.

I’m not defending anyone but the IMF don’t always get it right.
Although a long time ago this was one of their spectacular failures.

www.heritage.org/europe/report/russias-meltdown-anatomy-the-imf-failure

MerylStreep

I’m not defending anyone but the IMF don’t always get it right.
Although a long time ago this was one of their spectacular failures.

www.heritage.org/europe/report/russias-meltdown-anatomy-the-imf-failure

Good to have a balance??

Esspee

I cannot be alone in being stressed beyond measure at what our country has become.
There is a surge on Twitter of people committing to vote for any party to get the Conservatives out by tactical voting.

Good to know that Espee Tactical voting against the Tories is the best way to beat them as long as we have FPTP

Haven't had to think about about this seriously before but wondering if private pensions will be affected with dire economic position? I depend very much on my late DH's at the moment.

Grayling1

Haven't had to think about about this seriously before but wondering if private pensions will be affected with dire economic position? I depend very much on my late DH's at the moment.

That’s one if the reasons the BoE has stepped in.

Whitewavemark2

Richard Murphy
@RichardJMurphy
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6m
It looks as if the Bank of England's intervention in the market this morning has failed - which is hardly surprising since it was riddled with absurd contradictions, almost as bad as those Kwarteng managed. The pound has fallen again....

Those were my thoughts. (And I hadn't read Murphy's comment first)

Especially if the BoE haven't acted with the approval of the government.

Tbh it may have made matters worse, right hand/left hand etc.

The markets have no trust in anything now it seems.

I see Redwood says we should ignore market reaction and the IMF.

Good luck with that?