Do we need to worry about the weakening pound?

Pryce, Vicky (2023) Do we need to worry about the weakening pound? Birmingham City University, Centre for Brexit Studies Blog.

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Abstract

Yes, sterling has declined in the last few weeks to a six monthlow. But it is still way above the $1.09 it had fallen to after the chaos that followed the Truss /Kwateng mini budget almost exactly a year ago when the markets lost confidence in the UK, its fiscal sustainability and its currency. That was the time when yields shot up in response and the Bank of England had to intervene to buy bonds to save the pensions industry,abandoning temporarily plans to start selling the bonds it had accumulated on its balance sheet during the Covid period when it had engaged in massive Quantitative Easing. The Bank was forced to step in and start buying bonds instead. And it was only with the change of Chancellor to Jeremy Hunt and then also of Prime Minister to Rishi Sunak that the pound started to recover. And it did quite handsomely for a while, rising strongly, even touching the dizzy heights of just above $1.30 at some point.

Item Type:	Other
Dates:	Date Event 25 September 2023 Published Online
Uncontrolled Keywords:	Centre for Brexit Studies, CBS, Brexit, BCU, EU, European Union, UK, Birmingham City University, UK Government, UK politics
Subjects:	CAH15 - social sciences > CAH15-03 - politics > CAH15-03-01 - politics
Divisions:	Research, Innovation, Enterprise > Centre for Brexit Studies
Depositing User:	Gemma Tonks
Date Deposited:	27 Oct 2023 13:41
Last Modified:	27 Oct 2023 13:41
URI:	https://www.open-access.bcu.ac.uk/id/eprint/14890

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