Liz Truss, the prime minister of the United Kingdom, defended her tax cut plan on Thursday even though it caused market turbulence and necessitated a Bank of England intervention to avert “material danger” to the economy.
She said in her first remarks following Friday’s mini-budget, “We had to take decisive action to get our economy growing, get Britain moving, and also deal with inflation.
Naturally, that entails making contentious and challenging decisions, but as prime minister, I’m willing to do that.
It’s crucial that the UK is proactive and using all available levers to promote economic expansion. We are moving through with it,” she afterwards said on BBC Radio Lancashire.
Despite being in power for less than a month, Truss is already under severe pressure after the markets reacted to her government’s tax cuts by sending the pound to an all-time low against the dollar.
The Bank of England intervened on Wednesday to purchase government bonds in order to stop a “material danger” to stability, and UK markets remain extremely volatile.
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The bank declared it would “not hesitate to alter interest rates by as much as needed” to combat excessive inflation after sterling hit its dollar low early on Monday.
However, it also hinted that it would postpone thoroughly evaluating the effects of the contentious government proposals until its next policy meeting on November 3.
Due to the issue, opposition leaders have urged Truss to recall parliament and cancel her party’s conference, which begins on Sunday.