 are being watched and scrutinised globally more than ever? October 20 Liz Truss bows out… finally Thumbs up. Markets had been clamouring for Truss to go for weeks. Some 15 minutes after she quit the pound rose from $1.11 to $1.13. October 24 Rishi's back in Downing Street Thumbs up. Sterling hit a high of $1.138 though it closed slightly lower at $1.130 amid speculation over whether the UK was about to have its fifth chancellor in three months. October 25 Hunt stays in No. 11 Thumbs up. It took just 15 minutes for the pound to soar to $1.149 following confirmation that Hunt was staying in post as chancellor. The 30-year-gilt yield fell to 3.67% – evidence of the markets' relief that Trussonomics was consigned to the history books. This is important for us ordinary folks, as well as City traders. The Financial Times reported last week this could save the government – and therefore taxpayers – £1.6bn in interest rate costs. October 26 Office for budget responsibility forecasts pushed back again Thumbs up… for the moment. Kwasi Kwarteng wanted November 23. Then he caved and said the OBR could){kind=link}
To say that it has been a tumultuous time in British politics is quite the understatement, with a rollercoaster of changing chancellors, resigning prime ministers and an unprecedent level of U-turns leaving the markets panicking.
Since the departure of Liz Truss, new prime minister Rishi Sunak is probably hoping that the economy crashing mini-budget will become a distant memory to both the markets and the people.
There may be a long way to go before any stability, but the markets are showing little signs of positivity.
The fact that the pound soared within 10 minutes of Truss’ farewell speech was an indicator that things had to get a bit better. Sunak’s re-shuffle leaving Jeremy Hunt in place as chancellor has also appeased things somewhat.
But what else has been given the thumbs up by markets in a time of crisis? And what will come next as the UK’s moves (please no more U-turns) are being watched and scrutinised globally more than ever?