In the midst of a wave of inflation that is battering the world, the British prime minister's plan to slash taxes amounted to opening a firehose filled with gasoline into that raging economic fire. | Opinion by Frida Ghitis
Editor’s Note: Frida Ghitis, a former CNN producer and correspondent, is a world affairs columnist. She is a weekly opinion contributor to CNN, a contributing columnist to The Washington Post and a columnist for World Politics Review. The views expressed in this commentary are her own. View more opinion on CNN.
In what amounted to a statement – and action – branding the UK government’s policy as misguided, the Bank of England, Britain’s Fed, started buying bonds to support the pound and prevent “dysfunction” just days after raising rates to tackle inflation. To counter the selloff, and to keep pension funds from going under, it vowed to continue the purchases “on whatever scale necessary.” Its chief economist, Huw Pill, said Truss’ cuts would require a “significant monetary policy response.
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