Not a good look
The BoE having to intervene to mitigate the damage done by the government is not a good look. The IMF – which traditionally raises its eyebrows at emerging markets finance ministers – took the unusual step of criticising UK policy on Tuesday night. We have the ratings agencies also waiting in the wings, and a credit rating downgrade is a possibility too. All eyes are now on speeches from the new Prime Minister and Chancellor at the imminent Conservative Party conference (due to take place between October 2 and 5 in Birmingham) – there is a fear that there is nothing they can say that won’t make things worse.
The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.