Welcome to Business Outlook
Related Articles
The pound rose and government borrowing costs fell on Monday, as investors welcomed the news that Chancellor Jeremy Hunt is to fast-track tax and spending measures.
Sterling gained 1% against the dollar to trade around $1.13 in morning trading.
The news also saw the interest rate – or yield – on UK government bonds fall.
The drop in yields suggests financial markets are welcoming the prospect of changes to economic plans.
Monday is the first time the UK government bond market has reopened since the Bank of England’s emergency support programme ended on Friday.
On Friday, Prime Minister Liz Truss sacked Kwasi Kwarteng as Chancellor and said the mini-budget “went further and faster than markets were expecting”.
The mini-budget was blamed for causing turmoil in the financial markets. The aftermath of Mr Kwarteng’s announcements on 23 September saw the pound slump to a record low of $1.03 and the cost of government borrowing rise sharply.
(DS)
