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New York
CNN Business
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After tumbling to a record low against the dollar, the British pound stabilized Tuesday, rising more than 1% to $1.08.
But the economic policy that sparked the currency’s historic nosedive yesterday hasn’t gone away. And it’s especially bad news for anyone who isn’t wealthy.
Here’s the deal: Millions of homeowners in the United Kingdom are about to see their monthly mortgage payments increase by hundreds or even thousands of dollars, my colleague Anna Cooban writes.
That’s because the Bank of England is now widely expected to hike interest rates even further to tackle inflation that will be exacerbated by the government’s sweeping tax cuts. Many expect the borrowing rate to hit 6% next year, up from 2.25%.
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