The BoE May Have to Act Quickly to Prevent a Further Crash in the Pound

Pound falls against the dollar the BoE may have to act quickly to prevent a further crash in the currency. The central bank has already increased interest rates to protect investors

Pound is already at its lowest level since decimalisation in 1971, but its slide is likely to worsen this week as investors become wary of the UK's government's plans to cut taxes.

 The Chancellor's PS45bn tax cut package has spooked investors, fueling speculation that the Bank of England might hike interest rates to reverse the fall.

The government's plan to cut taxes and regulations is an enormous gamble in the current economic climate. 

Its aim is to generate growth that will contribute to public services and eventually pay off the government's debt. However, it is unclear whether the plan will succeed.

The government announced PS45bn in tax cuts, and it also announced that it would spend PS60bn on energy subsidies in the first six months. 

Amount spent on energy subsidies is also expected to rise over the next two years. As the government continues to cut taxes, it is expected that the pound will fall even further