Stock - Pound
The currency's selloff began Friday with the release of the government's "Growth Plan," a budget in all but name and the biggest tax giveaway in half a century. Image Credit: Bloomberg

London: The pound snapped a two-day gain after the Bank of England’s bond-buying program failed to quell jitters over the UK’s tax-cut plan.

The currency fell 1.1 per cent to $1.0767, paring Wednesday’s surge after the BOE said it would buy an unlimited amount of long-dated bonds until October 14 to stave off a crash in the UK’s bond market. Thursday’s slide puts the currency on track for its worst month since the UK voted to leave the European Union in June 2016.

Everyone from investors to the International Monetary Fund are concerned that the UK’s fiscal stimulus measures could fuel inflation and stoke the nation’s ballooning debt. The currency notched a record low against the greenback earlier this week, triggering talk it may hit parity with the dollar.