Sterling rises as Treasury Secretary issues policy announcements

London – The pound sterling to rebel against Dollars On Monday morning, Britain’s new Prime Minister Jeremy Hunt announced that he would present parts of his medium-term budget to the session.

The pound rose almost 1% to $1.1288 on Monday morning, extending its gains following the British Treasury report.

The decision comes after a dramatic day in British politics on Friday, which included major fiscal changes by Prime Minister Liz Truss and the resignation of Chancellor of the Exchequer Quasi Quarting. Hunt replaced him soon after and is expected to issue a statement at 11am local time on Monday.

Monday announcements come two weeks early. However, the full medium-term fiscal plan was not released by October 31, with forecasts from the independent Office for Budget Responsibility – which was not included in the original mini-budget announced on September 23 – sending UK markets higher.

Hunt said last weekend that his priority as Treasury Secretary was growth, as was his predecessor, but made it clear that growth would be “underpinned by stability”.

“The drive to grow the economy is right — it means more people can get quality jobs, new businesses can flourish, and we can ensure world-class public services. But we’ve gone too far and too fast,” Hunt said in a statement. on Saturday.

Biden: Original plan was a ‘mistake’

International Monetary Fund He has made a poor judgment call for debt-financed tax cuts After it was first announced in late September. United Kingdom Saw the band Sell ​​sharp and by the pound A low achievement was achieved Over the next few days.

In a rare statement, the IMF said the UK’s plans could “increase inequality” and insisted it was “not recommending large, untargeted financial packages at this time”.

US President Joe Biden threw his weight behind the UK economy this weekend, calling Truss’ now-abandoned tax cut plan “misguided” and worried that other countries’ monetary policies could hurt the US.

“I’m not the only one who thinks it’s a mistake,” Biden said. “I don’t agree with the policy, but it’s up to Britain.”

Biden said he “expected” Truss to back down on the plans. He spoke to reporters Saturday at an Oregon ice cream parlor.

Gear stick

Truss announced Friday A reflection of the so-called mini-budget area, including canceling a pledge to repeal the corporate tax hike. Corporate taxes, originally planned by his predecessor Boris Johnson’s government, have now been raised from 19% to 25%.

“It’s clear that some parts of our mini-budget have gone even faster than the markets expected,” Truss said at a short, hastily arranged news conference on Friday.

Markets Not sure about this move thoughThe pound fell about 1.1% against the dollar after a letter, trading around $1.1205. Many political observers have highlighted his poor performance on Friday, which has put pressure on Truss, with some lawmakers calling for his resignation.