Financial market turmoil, which saw the pound fall to a record low against the dollar, dominates today’s front pages.
The currency fell as investors lost confidence in UK public finances after last Friday’s mini-budget.
The Guardian leads with “Sterling crisis deepens as Truss strategy unravels”, reporting that the government was struggling to prevent a large-scale loss of financial market confidence in its economic strategy.
The FinancialTimes a “Bank of England and Treasury fail to calm market nerves over UK finances”. The newspaper said a statement from the Bank “dashed market hopes of an emergency interest rate hike to support the pound”.
The Time leads on the central bank’s pledge to act after the fall of the pound with its headline ‘Bank pledges to act after day of turmoil’.
The Telegraph “frightened lenders dropping new mortgages amid the pound chaos,” noting Halifax, Virgin Money and Skipton were among lenders that struck mortgage deals ahead of an expected rate hike.
The I The newspaper has a similar view with its lead story: ‘New mortgages stuck amid UK market turmoil’ above a photo of Prime Minister Liz Truss and smiling Chancellor Kwasi Kwarteng.
The Express said “Don’t panic! We have a plan to reduce the debt”. He says the chancellor “ignored yesterday’s jitters in the financial markets” by pledging to outline his strategy for debt reduction.
The Subway has “The pound Kwartanks” next to a photo of Kwarteng.
The Mirror displays the subheading “Conservative Economic Catastrophe” above its “Uncontrollable” headline. The newspaper says millions of households are facing further financial misery as “Kwarteng tax cuts throw markets into chaos”.
The Mail take is “Fury at the city slickers betting against UK Plc.” He quotes senior conservatives who said short sellers were “trying to make money off bad news.”