A noteworthy movement in monetary policy far from quantitative easing is required to be declared in the current year’s Autumn Statement, as per reports.
U.K’s new Prime Minister, Theresa May is said to backing a move away from the financial strategy sought by George Osborne, while the prime minister is looking to move their monetary policy towards taxes and spending.
George Freeman, the Conservative MP affirmed that the change would be reported in one month from now’s Autumn Statement.
Talking on Wednesday night to BBC Newsnight, he proposed the strategy could be uncovered by the Chancellor Philip Hammond as soon as the Autumn Statement.
It comes after Mrs May strongly condemned the “awful reactions” of quantitative easing amid her discourse to the Tory Party gathering.
Prime Minister Theresa May: “We have to acknowledge there have been some bad side effects [from low rates and QE] … People with assets have got richer. People without them have suffered. People with mortgages have found their debts cheaper. People with savings have found themselves poorer.”
The volatility in the U.K. business environment continued to impact the Pound exchange rate against other currencies.
The pound currency rate fell to a 31-year low, while British government bond prices also fumbled massively during Thursday trading, as traders panicked that the British economy was moving towards a hard Brexit and an appreciation in government expenditure.
Sterling exchange rate declined below $1.27 against the U.S. Dollar for the second time in the last week, which is its lowest level since Brexit.
Analysts believe that a sharp decline the Pound Sterling exchange rate has fuelled estimates for higher inflation rate, which could erode bond returns. UK’s financial markets have seen significant volatility following Theresa May criticism over the easing policy.