The combination of Inflation, Higher Interest rates and politics is ruining Britain Economic stability
The Situation in the UK is an example for all the nations that high inflation and high-interest rates can be a threat to the finance system.
New Tax rules from British government sparked investor concern about the country’s fiscal credibility and crashed both the pound and the market for U.K
There were huge swings in value of pound and which resulted in downfall of gilts
The Big move in pound benefited the dollar and it became big hit for stocks and commodity prices
FED is also playing role in this situation as its shift to much higher rates helped the dollar to soar, hitting sterling and lifting global rates even before the tax-cut-driven selloff
The main reason behind all this is govt surprise unfunded tax cut, to the tune of about 1.8% of GDP a year, with the well-off benefiting the most