The Bank of England “will not hesitate” to raise interest rates amid market turmoil
The International Monetary Fund’s warning over Liz Truss and Kwasi Kwarteng’s tax cuts for the rich is “very dire” and shows “what a mess the government has made of the economy”, Labour’s Sir Keir Starmer said , while the pound fell in Asian trade.
In a rare intervention, the IMF took aim at the government, warning that “large and untargeted tax packages” would “likely increase inequality” in Britain, after the chancellor’s mini-budget on Friday sent the pound tumbling sterling and bonds at a historic level. low yields and gilts shoot up, reflecting the cost of borrowing.
“Given the high inflationary pressures in many countries, including the UK, we do not recommend large, untargeted fiscal packages at this time, as it is important that fiscal policy does not operate cross-cuttingly with monetary policy,” a spokesman said of the IMF.
The pound then fell below $1.064 on Wednesday morning, still well above a record low of $1.03 at the start of the week, before climbing back towards $1.08 relatively stable observed during most of Tuesday.
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Pound falls slightly after IMF warning
The pound fell in early trade in Asian markets this morning after the International Monetary Fund criticized the government’s economic policy, falling 0.4% to $1.0693.
It came after a slight 0.4% rise in Tuesday’s session, after falling to an all-time low of $1.0327 earlier in the week.
Although it held around $1.08 as markets calmed somewhat on Tuesday, sterling briefly fell below $1.064 on Wednesday morning following the IMF intervention, before returning to north to $1.069.
Andy Gregory September 28, 2022 7:48 am
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IMF warning is ‘very serious’ and shows ‘what a mess the government has made’, says Keir Starmer
The International Monetary Fund’s rare condemnation of Liz Truss and Kwasi Kwarteng’s economic policy is “very serious” and “shows the mess the government has made of the economy”, Sir Keir Starmer has warned.
Speaking on LBC as his party’s conference draws to a close today, the Labor leader said: “This is self-inflicted by the government. People are very, very worried this morning, their mortgages are going up. The government has to respond to that.”
Claiming that “change” is in the air, after his well-received speech in Liverpool yesterday, which saw him try to vindicate Labor as “the party of the centre”, Sir Keir warned that “we will inherit a real mess if and when we enter the government”.
Andy Gregory September 28, 2022 7:35 am
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David Lammy attacks Empire’s ‘twisted lies’ that enslaved millions
David Lammy has hit out at Empire’s “twisted lies” which enslaved millions, in one of the fiercest condemnations by a major British politician.
The shadow foreign secretary linked the slave trade shame to Russia’s assault on Ukraine, in a Labor conference speech that ripped apart 40 years of failed Tory foreign policy.
Mr Lammy said his Guyanese parents would not have believed that “their thin son with NHS prescription glasses who was stopped and searched on the streets of Tottenham” could get the job he holds.
And he explained that they would be “surprised not only because the MPs at the time didn’t look like me, but also because I had barely traveled beyond Zone 3 of London”.
Our deputy political editor Rob Merrick has more:
David Lammy attacks Empire’s ‘twisted lies’ that enslaved millions
Shadow Foreign Secretary links slave trade shame to Russia’s assault on Ukraine
Namita Singh28 September 2022 07:00
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Buoyant Labor believes Truss’ ‘scorched earth’ approach cave in to power
Liz Truss appears to be taking a “scorched earth” approach to the economy that will leave a Labor government picking up the pieces after an election due in 2024, a shadow cabinet minister has said.
As stock markets plunged and the pound tumbled in the wake of last week’s ‘kamikaze’ mini-budget, delegates at Labour’s annual conference in Liverpool could hardly believe their luck at the apparent willingness of Prime Minister and Chancellor Kwasi Kwarteng to ax his own party’s most important electoral assets.
And there was a growing sense of confidence among them that opinion polls giving Keir Starmer’s party a lead of up to 17 points over the Tories could herald a remarkable return to power just five years after Labour’s crushing defeat in 2019.
Our political editor Andrew Woodcock has more:
Buoyant Labor believes Truss’ “scorched earth” approach can pave his way to power
Delegates are beginning to believe that Tory missteps will put Keir Starmer in Downing Street
Namita Singh September 28, 2022 6:50 am
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Badenoch looks at US investment in his first visit as Commerce Secretary
Kemi Badenoch will hail the “special relationship” between the UK and the US when she travels to New York for her first overseas visit as trade secretary.
The visit will see Ms Badenoch seek to boost trade links between the UK and the US, days after Prime Minister Liz Truss admitted during her recent visit to New York that a much-coveted free trade deal after Brexit could remain out of reach for several years to come.
The trip also comes amid the Biden administration’s continued uneasiness over Britain’s dispute with the EU over the Northern Ireland Protocol, a set of concerns that have threatened to strain relations between the UK and the US.
Badenoch looks at US investment in his first visit as Commerce Secretary
Kemi Badenoch will celebrate the ‘special relationship’ between the UK and the US when she travels to New York.
Namita Singh September 28, 2022 6:40 am
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‘Don’t forget, don’t forgive’: Starmer urges voters to punish Truss over financial chaos
Keir Starmer has called on British voters to punish Liz Truss at the polls for the financial chaos unleashed by her mini-budget, telling them: “Don’t forget. Don’t forgive.”
In a direct address to traditional Tory voters, he said Labor was now the party of “hard money… home ownership”. [and] responsible government’, while Truss’s ‘spectacular’ irresponsibility had sent the pound plummeting, fueled inflation and destroyed Conservative claims to be ‘the party of aspirations’.
In a sign of growing confidence that power is within reach at a general election due in 2024, Sir Keir cited previous Labor victories achieved after long periods of Conservative rule as he told cheering delegates: “Like 1945 , 1964 and 1997, this is a Labor Moment”.
Our political editor Andrew Woodcock reports:
‘Don’t forget, don’t forgive’: Starmer urges voters to punish Truss over market chaos
Labor leader announces plan for publicly owned power company to deliver ‘fairer, greener future’
Namita Singh September 28, 2022 6:30 am
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Liz Truss is bad for Britain on the world stage, most voters say
Liz Truss does not have what it takes to best represent British interests when dealing with senior international leaders, according to more than half of people who took part in a newly published poll.
More than 52 per cent say they have little or no confidence that the Prime Minister will perform well on the world stage, with the same number saying this comes after the country’s reputation was already seriously damaged during the Boris Johnson years .
Pessimism about what lies ahead was also echoed by a majority (52%) who believe Brexit has damaged Britain, with a large number (46% to 19%) believing the process has been mismanaged .
Read more in this report by Kim Sengupta:
Liz Truss is bad for Britain on the world stage, most voters say
More than half of Britons say the Prime Minister is not ready to represent the UK abroad
Namita Singh September 28, 2022 6:15 am
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Labor MP apologizes for calling Kwasi Kwarteng black ‘superficially’ after suspension
The MP suspended by Labor for calling Kwasi Kwarteng black “superficially” has apologized to the chancellor.
Rupa Huq offered a “heartfelt and sincere apology” for what she called her “ill-judged” comments, at a fringe meeting at the Labor conference.
The Ealing Central and Acton MP initially defended his remarks, in which he said of wealthy, Eton-educated Mr Kwarteng, “you wouldn’t know he was black”.
But he has backtracked after Tory MPs condemned them as “racists” and Keir Starmer withdrew his party whip.
Our Deputy Political Editor Rob Merrick reports:
Labor MP apologizes for calling Kwasi Kwarteng black “superficially”.
Ed Miliband says Labor must decide Rupa Huq’s future after ‘reprehensible and appalling’ comments
Namita Singh28 September 2022 06:00
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Conservative MPs tell Chancellor Kwarteng to act on mini budget ‘disaster’
Kwasi Kwarteng is facing demands from his own party to act within days amid fears millions will face a sharp rise in mortgage rates, with a senior Tory MP describing the mini-budget of last week as “an unmitigated disaster.”
Tory MPs called for swift action to restore investor confidence after the chancellor sparked turmoil in markets and sent the pound to a record low.
Read more in this report:
Conservative MPs tell Chancellor Kwarteng to act on mini budget ‘disaster’
IMF issues extraordinary rebuke to UK government, calls for rethinking tax cuts
Namita Singh September 28, 2022 5:45 am
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Labour’s turnaround could be achieved in a single term
Keir Starmer giving a speech on solar power, wind farms and home insulation may not be many people’s idea of a fun afternoon in Liverpool, but the Labor Party was certainly enjoying itself as he walked on his green path…