Financial Markets Welcome News Rishi Sunak to be Next PM | Business News

Financial markets seem to welcome the news that Rishi Sunak will become Britain’s next prime minister.

The pound rose 0.15% against the US dollar shortly after Sir Graham Brady, chairman of the 1922 Commission, said only one person had received a valid nomination for the top job.

The pound was trading around $1.11 on Friday afternoon as Boris Johnson appeared to be plotting a political comeback with a challenge to Snack.

However, at about 2:30 pm on Monday, it was $1.13.

When the bonds opened for trading early on Monday, they quickly rebounded as the implied interest rate on these bonds dropped sharply, making it clear that Mr Sunak would likely not be opposed.

The FTSE 100 is up just over 0.6%, while the more domestic FTSE 250 is up 1.25% in a day.

Markets will see Snak, a former finance man who served as prime minister under Mr Johnson, as a safer bet than his predecessor, Liz Truss.

Mr. Sunak, who warned in the last leadership election that Mr. Truss’ tax cut plan was reckless and would cause economic problems, has been proven right. intervene to prevent collapse in the pension industry.

Also on Monday, it was reported that future increases in interest rates would be lower than earlier forecasts.

The market is currently bank of england Set interest rates at just under 5%, lower than the expected 6% in the weeks following Truss’ mini-budget.

Its lower expected rate likely means cheaper mortgage repayment For homeowners. Financial Markets Welcome News Rishi Sunak to be Next PM | Business News

Exit mobile version