British Prime Minister Liz Truss today resigned as UK Prime Minister. Her mandate only lasted a month and a half.
“In another extraordinary twist, Prime Minister Liz Truss stepped down after just 44 days of UK rule. It is not often that political machinations have such a direct impact on personal finances. Even during Brexit, the net effects were slow in economic terms. But the crisis we find ourselves in requires swift action by the Conservative Party to elect a new leader, ”comments Sam North, market analyst at eToro.
British gilts and the pound reacted somewhat to his resignation, but without marking a major move. “The situation could change if the uncertainty continues over time,” adds the eToro expert.
“Chancellor of the Exchequer, Jeremy Hunt, is expected to present a new budget and OBR forecasts on Halloween, but there is plenty of time for markets to shake before then, making his job more difficult and worsening conditions for households in terms of inflation and interest rate expectations and the consequent tax implications “.