ICYMI: Trussonomics may freak out the markets, writes Hugodixon
As a result, the BoE will need to jack up interest rates sharply to re-establish price stability. It’s also minded to startgovernment bonds later this month. These moves are unlikely to please Truss. Not only will they deepen the recession and hit her core voters; they will make it harder to fund a fiscal bonanza.
While Johnson often kicked the issue into the long grass, Truss seems to want to bring the conflict to a head. Although she opposed Brexit in the 2016 referendum, Truss now has the enthusiasm of a convert. To become prime minister, she also had to woo the hard-line Brexit supporters in her party.
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