IMF urges UK Prime Minister-designate Burnham to avoid fiscal recklessness, saying British bonds are still scarred after the Truss crisis

Glonghui, July 16 | The International Monetary Fund (IMF) has warned the UK's incoming Prime Minister Andy Burnham that the 2022 Liz Truss budget crisis caused permanent scars, making the UK government bond market more sensitive to UK fiscal policy. The IMF said that after the market turmoil triggered by former Prime Minister Truss's mini-budget nearly two years ago, the bond market has undergone a "structural shift." At that time, Truss planned to increase spending and cut taxes, with tens of billions of pounds in funding sources unclear. The plan was eventually withdrawn after strong opposition from investors.