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.