Pound rises after British finance minister’s statements

The pound rose against the dollar and euro on Monday after new British finance minister Jeremy Hunt scrapped most of the budget measures announced by his predecessor at the end of September.

The pound was up 2.05% to 1.1401 dollars and 1.21% to 85.99 pence per euro by 4:35 p.m., a sign that investors were positive about promises of tax increases and spending cuts.

“Almost all” of the tax cuts were repealed

Earlier, Jeremy Hunt announced he would reverse all the tax cuts announced last month in a humiliating repudiation of Prime Minister Liz Truss, whose days in Downing Street appeared to be numbered.

Jeremy Hunt, appointed in an emergency on Friday after the failure of his predecessor Kwasi Kwarteng’s “growth plan”, hammered out in a televised statement that the government’s priority now is to restore “stability”. In the face of dramatically rising energy prices, long-term assistance to families must be limited.

The broad lines of the mid-term budget are due to be presented in full on October 31, trying to calm markets.

Our article at the end of the day for this Monday, October 17, 2022: To save its economy, the United Kingdom makes a 180-degree turn