The U.K.'s crisis of confidence was years in the making
BNN Bloomberg
Britain is in a self-inflicted financial crisis that threatens to accelerate the economy's dive into recession — and the country’s new prime minister is coming under intense pressure to blink.
In the week since the government unveiled the biggest tax cuts since 1972 with scant detail of how they will be financed, the pound has crashed to its lowest-ever level against the dollar, the cost of insuring British government debt against the risk of default has soared to the highest since 2016, and the Bank of England has been forced to intervene amid concerns about the nation’s pension funds.
What happens next will determine just how deep the looming recession proves. Central to that question is whether Liz Truss’s three-week old administration can restore its credibility with investors.
