Pound Sinks As Markets React to UK's Mini-Budget

Image copyright: EPA-Shutterstock [via The Telegraph]

The Spin

Right narrative

This is a bold and thoroughly conservative economic strategy from the Tories for the first time in years. Truss is in a race against time, facing the prospect of an election in two years and an impending recession. The conservatives are finally reprioritizing boosting growth and shrinking the state.

Left narrative

The Tories are gambling with the nation's finances with a set of drastic tax cuts that senior economists have said are unlikely to significantly boost GDP. The Bank of England has signaled that the UK is already in recession and now Truss's policies will cause further pain by adding to inflationary pressures.

Metaculus Prediction


Political split

LEFT

RIGHT

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