British exchanges against the US dollar hit a record low

Xinhua News Agency, London, September 26 (Reporter Huang Zemin) Affected by the large -scale tax reduction plan of the British government cracking down on market confidence, the British exchange rate on the US dollar fell to nearly 1 to 1.03 in the early Asia trading on the 26th, setting up 1971 British currency adoption in 1971 The minimum level since the decimal, and then rose to about 1 to 1.08.

British Treasury Secretary Quasi Kwate announced on the 23rd that the country's largest tax reduction measures over the past 50 years to boost the economy. On the same day, the exchange rate of the pound to the US dollar fell below 1 to 1.09, the lowest level in 37 years. On the 25th, Kwoten said that the government had planned to reduce the basic tax rate of personal income tax, and more related measures will be introduced in the future. This statement exacerbates market panic, which led to continued to fall on the 26th British exchange rate.

Paul Johnson, director of the British Institute of Finance, believes that the tax reduction plan will significantly increase government debt, and at the same time will promote demand and stimulate inflation to continue to rise, which will run counter to the British Central Bank of England Bank of England.

Chad Hunter, director of the market director of the British Interactive Investment Corporation, said that investors are worried that tax cuts will make the British economy further. The tax reduction plan plus the US dollar strengthening, pushing the pound to the US dollar exchange rate on the 26th to touch the historical low on the 26th.

From April to July this year, the British inflation level refresh the highest record in 40 years. In August, the British consumer price index rose 9.9%year -on -year, and it was still at a high point in 40 years. In order to suppress high inflation, Bank of England announced on September 22 that the benchmark interest rate was raised from 1.75%to 2.25%, which is the seventh rate hike of the Bank of England since December last year.

[Editor in charge: Xu Haizhi]

- END -