UK Economic News

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Bank of England intervenes in bond market after massive sell-off
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First to PIVOT..... actually it is an act of desperation but market see it as bullish

Bank Of England Capitulates: Restarts QE Due To "Significant Dysfunction" In Bond Market, "Material Risk" To Financial Stability

Such irony
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Sometimes central banks have to react because of the foolishness of Congress/Cabinet.

For UK, if the new PM had not been foolhardy to proceed with a tax cut for all when its deficit is at an all time high, the markets would not have reacted so violently. Singapore has one of the smartest policy which is increasing taxes but giving constant rebates to the lower income groups. The other good policy was giving $100 CDC to all regardless of income

In this sense, what PM truss should have done was not to tax cut across the board, but instead offer tax cuts to only selected groups if the intent was to spur spending as certain income groups have higher propernsity to consume (example for Income level below XX,000 before deductions your taxes will be reduced or property value below XXX), it achieves the secondary aim of helping the less well off to cope with the cost of living crisis. Their taxations are progressive by nature, hence the announced reduction in tax is both regressive and reduces govt revenue.

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