Pound rallies as UK set to unveil spending plans — World — The Guardian Nigeria News – Nigeria and World News


The pound jumped more than one percent against the dollar Monday as Britain’s fourth finance minister in as many months prepared to update on UK tax and spending plans that spooked markets in recent weeks.

Sterling rallied 1.1 percent to $1.1293 ahead of Jeremy Hunt’s fiscal announcement due 1000 GMT.

Hunt became chancellor of the exchequer Friday after Prime Minister Liz Truss sacked Kwasi Kwarteng as she battles to save her political career just weeks after taking the keys to Downing Street.

Hunt is tipped to tear up Truss and Kwarteng’s plan of avoiding spending cuts to pay for tax cuts, most of which have been scrapped following markets turmoil.

“It does indicate that they are moving back to some degree of fiscal probity and employing a slightly more prudent fiscal outlook,” said Peter Kinsella, of Union Bancaire Privee UBP SA.

The pound recovered strongly having sunk Friday owing to the uncertainty in Westminster, while a news conference by Truss did very little to…

Source: Guardian Newspaper