Goldman Sachs forecast a more severe recession next year as it lowered its growth forecast for the British economy from a contraction of 0.4% to a contraction of 1%.
According to Arab Net, Goldman Sachs indicated a decline in the already weak growth momentum, tight financial conditions, and an increase in corporate tax starting next April.
In contrast, the bank lowered its forecast for core inflation from 3.1% by the end of next year, versus a previous forecast of 3.3%.
In addition, the British Ministry of Finance stated that the new Finance Minister, Jeremy Hunt, will announce new tax measures and decisions regarding spending, today, Monday, two weeks before the previously scheduled date.
It is expected that the vast majority of the decisions of the former finance minister, Kwasi Quarting, will be canceled, except for cuts to social security and property taxes.
The pound rose strongly today, amid these developments and in light of calls for the resignation of Prime Minister Liz Terrace, while Treasury yields fell sharply, despite the end of the Bank of England's emergency bond-buying program.
The pound rose after Terrace, in part, retracted its economic plan, and announced that it would raise the tax on British companies to 25%, starting in April of next year, instead of keeping it at 19%.
Hunt promised to restore Britain's economic credibility by fully accounting for the government's plans for tax and spending, while insisting that Liz Truss remain in charge of the country.
