'His plan is good, it's not at the amateur level but you have to consult a more expert.'
The new economic strategy introduced by the leadership of Prime Minister Liz Truss may be liked by the people of the United Kingdom (UK), but it is strongly opposed by the market.
Recently the International Monetary Fund (IMF) openly criticized the plan brought by the UK Finance Minister, Kwasi Kwarteng when the value of the Pound decreased as soon as the tax cut was implemented.
The pound fell to an all-time low of $1.0327 on Monday, weighing on UK currency markets.
According to the IMF spokesperson, high global inflationary pressure requires the implementation of a specific monetary policy and any untargeted fiscal package can slow down the efforts of the central bank.
As you know, the Central Bank of England (BOE) is implementing a tightening policy to control inflation, but the tax reduction introduced by Kwarteng wasted the central bank's initial efforts.
As a result, the IMF unabashedly questioned the credibility of Kwarteng's plan and underlined that the move could increase inequality in the UK economy.
This indirectly also gave a great blow to Kwarteng and Truss to re-evaluate the plan introduced.
Although the plan was originally designed to support households and businesses while doubling the rate of long-term economic growth, the fundamentals have caused investors to lose confidence.
In addition, economists including investors and leading executives are seen as if boycotting the economic plan.
On the other hand, the IMF, which has held a symbolic interest in British politics since the balance of payments crisis in 1976, is said to continue to closely monitor the UK's progress with the new economic plan.
