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The IMF issues a devastating verdict on UK tax cuts

new economic measures out Great Britain government “likely to increase inequality,” according to an International Monetary Fund spokesman.

Yuri Gripas | Reuters

LONDON – new economic measures out Great Britain government “likely to increase inequality,” the International Monetary Fund said. in rare statement.

While the fiscal package – which included significant tax cuts for British highest miners – seeks help families and businesses are coping with the energy shock, the IMF “does not recommend large and unearmarked financial packages at this stage,” the spokesman said. in statement late Tuesday evening.

The so-called “mini-budget” on Friday was not accompanied by a forecast from an independent UK agency for Budgetary responsibility, which usually analyzes the impact big financial moves most likely, on in economy.

Markets have been hit hard by new measures, with British bonds are falling, and the British pound is falling to a minimum. record short on Monday.

IMF also looked ahead at next full budget announcement, set be mortgaged out Finance Minister Kwasi Kwarteng on November 23, saying it gives the UK government “early opportunity … to consider ways to ensure support that is more targeted and re-evaluate tax measures, especially those that benefit high-net-worth individuals.”

“Big unsecured loan cuts are negative”

‘Nearly unprecedented’ fiscal injections have put the UK economy in a difficult situation,” said Ian Harnett, co-founder and chief investment strategist at research firm Absolut Strategy.

move made bank of England’s position is “nearly impossible,” he said. on CNBC “Squawk Box Europe” on Wednesday.

Bank of England is likely to inflict “significant policy response” after the financial announcement, according to chief economist Hugh Pill. who spoke at the Barclays-CEPR International Monetary Policy Forum in London on Tuesday.

Not yet moves will be made forthcoming of in banks next scheduled meeting in November, recent announcements “will act as a stimulus,” Pill said, according to Reuters.

Meanwhile, credit ratings agency Moody’s said “large unsecured cuts are negative for creditworthiness”, raising concerns. of more budget deficit and higher interest rates in United Kingdom

“Stable confidence the shock caused market anxiety over authenticity of in governmentfiscal strategy resulting in structurally higher funding costs can more permanently weaken Great Britain debt availability,” Moody’s said in a statement, Reuters reported.

“mini-budget” announced through new Great Britain government on Friday was “new an approach for a new era focused on growth”, according to Kvarteng, and provided for the cancellation of the planned increase in corporate tax from 19% to 25% and waiver of the 45% income tax rate on income over ₹150,000 (US$160,000) as leader rate down up to 40%.

Pound seen some recovery from him record short of $1.0382 per start of a week and cost about $1.0666. on Wednesday morning.

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Tyler Hromadka
Tyler Hromadka
Tyler is working as the Author at World Weekly News. He has a love for writing and have been writing for a few years now as a free-lancer.

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