Egypt’s pound slides as IMF deal triggers new exchange rate regime

Central bank hikes rates in an effort to contain inflation IMF says deal can catalyze about $5 bln in FY 2022/23 Finance rules that snarled imports to be phased out CAIRO, Oct 27 (Reuters) – Egypt’s pound slid about 14.5% to a record low against the dollar on Thursday as authorities announced a $3 billion … Read more

New PM Rishi Sunak pledges to lead Britain out of economic crisis

Sunak meets King Charles on Tuesday morning Vows to rebuild trust in the country Expected to start forming a cabinet Sunak faces a huge challenge to rebuild stability LONDON, Oct 25 (Reuters) – Rishi Sunak became Britain’s third prime minister in two months on Tuesday and pledged to lead the country out of a profound … Read more

UK PM Truss clings to power as chaos in Westminster escalates

Truss losing authority as lawmakers quarrel Pound stable against the dollar Some lawmakers say Truss must go now LONDON, Oct 20 (Reuters) – British Prime Minister Liz Truss battled to retain her grip on power on Thursday, a day after a second top minister quit and rowing and jostling broke out among her lawmakers in … Read more

As UK’s Truss fights for her job, new finance minister warns of tough decisions

PM Truss sacked finance minister on Friday New chancellor Hunt warns of tough decisions Ruling Conservatives have slumped in polls Some Conservative lawmakers say Truss will be ousted LONDON, Oct 15 (Reuters) – Britain’s new finance minister Jeremy Hunt said on Saturday some taxes would go up and tough spending decisions were needed, signaling further … Read more

British pension funds step up fire sales as needed for cash soars

LONDON, Oct 11 (Reuters) – UK pension schemes are racing to raise hundreds of billions of pounds to shore up derivatives positions before the Bank of England calls time on support aimed at keeping them afloat. The Bank of England plans to stop buying bonds on Oct. 14, leaving pension schemes scrambling to meet a … Read more

Fire-fighting Bank of England forced to buy inflation-linked bonds

Bank of England says it will buy index-linked gilts Purchases of 5 bln stg per day to run to end of week BoE warns of ‘material risk’ to financial stability Move represents new headache for British PM Truss LONDON, Oct 11 (Reuters) – The Bank of England again sought to stem a sharp sell-off in … Read more

Challenging ‘orthodoxy,’ Kwarteng clings on after UK market rout

Weeks into job, UK finance minister under fire over tax cuts Truss stands by key ally but some question his future Kwarteng fired key official, went without fiscal forecasts LONDON, Sept 29 (Reuters) – As new British finance minister, Kwasi Kwarteng hoped to take down finance ministry groupthink that he and new Prime Minister Liz … Read more

UK’s Truss sticks to policy plan as she breaks silence after market rout

Truss says he will not change course on UK policy Bond markets calmer after BoE intervention Investors warn of loss of faith in government LONDON, Sept 29 (Reuters) – British Prime Minister Liz Truss said she would stick to her controversial plan to reignite economic growth as she broke her silence on Thursday following nearly … Read more

Bank of England ‘will not hesitate’ to act as it monitors market turmoil

Pound briefly touched a record low against the dollar Five-year gilts match Friday’s record daily slump Yields on 2-year and 5-year debt up 100 bps in 2 days Finance minister to detail fiscal plans on Nov. 23 BoE monitoring developments ‘very closely’ LONDON, Sept 26 (Reuters) – The Bank of England said on Monday it … Read more

Britain bets all on historic tax cuts and borrowing, investors take fright

Register now for FREE unlimited access to Reuters.com Register Kwarteng cuts top rate of income tax in dash for growth Huge increase in UK government debt issuance planned Gilts suffer biggest slump in decades Pound falls to new 37-year low against dollar LONDON, Sept 23 (Reuters) – Britain’s new finance minister Kwasi Kwarteng unleashed historic … Read more