The International Monetary Fund (IMF) has urged the UK government to “reevaluate” its strategy to boost economic growth with massive tax cuts funded by borrowing, which has spooked the markets and caused the pound to plunge.
The British pound on Monday plunged by more than 4 percent to just $1.03, an all-time low. It recovered to about $1.08 on Tuesday, but fell back to $1.06 on Wednesday morning.
It came after Prime Minister Liz Truss’s new government unveiled the biggest package of tax cuts in half a century, which was aimed at spurring growth in the UK economy but caused panic among investors concerned about increased government borrowing….