Pound plunges through $1.09 as former US Treasury secretary blasts ‘naive’ UK policies in mini-budget– as it happened

Sterling has tumbled by over three cents to 37-year low, and UK gilt yields are surging, after Kwasi Kwarteng announced huge unfunded tax cuts

Kwasi Kwarteng's (expected) pledge to turn the vicious cycle of stagnation into a virtuous cycle of growth" hasn't sparked much excitement in the City.

The blue-chip FTSE 100 index has lost 0.6% this morning, dropping to its lowest since mid-July.

The FTSE 250 index has lost 22% so far this year, with the latest 0.5% rate hike from the Bank of England adding to tightening concerns at a time when growth is flat to non-existent.

It is expected that the government will unveil a new fiscal event" later in a mini-budget which should involve tax cuts and increased spending in an attempt to stimulate growth. It remains to be seen how effective such moves might be, given the wider pressures affecting economies globally."