Why is the pound weak after the mini-Budget announcement?

The British currency dropped by 4.9 per cent against the dollar on Monday 26 September, its lowest level since 1971.

The pound plummeted across global markets after Chancellor Kwasi Kwarteng set out the government’s mini-Budget plan to cut various taxes by a combined £45bn.

Bank of England has since intervened to stabilise financial markets, buying 10-year government bonds for £5bn a day until mid-October in a bid to create more stability in the debt markets.

This comes as Minister Liz Truss defended her mini-Budget plans on TV.

Here, the Independent looks at what happened.

Click here to sign up for our newsletters.