October 17, 2022 20:51 PM
GBP/USD extended gains on the day to 1% and is now at 1.1282.
[First Financial]GBP/USD increased by 1% on the day, and is now at 1.1282. According to reports, as of October 16, three members of the British Conservative Party have publicly called for the resignation of British Prime Minister Truss. In addition, more than 100 Conservative MPs are preparing to submit a letter of no confidence in Truss, chairman of the “1922 Committee” of the Conservative Party parliamentary group in the House of Commons, and British Prime Minister Truss may face resignation before October 24.
In addition, according to CCTV News quoted the British “Guardian” on the 17th, a number of senior Conservative MPs will meet on the 17th local time to discuss the whereregardings of Prime Minister Truss. Some of them hope that Truss will resign within a few days. Stimulated by this news, the GBP/USD gain expanded to 1% on the day, and is now at 1.1282.
Former British Chancellor of the Exchequer Kwarten announced on September 23 the largest tax cut in 50 years to boost the economy. Sterling fell and British government bonds sold off sharply following the new measures were announced. The Bank of England had to rescue the market urgently, stabilizing financial markets through massive bond purchases.
On October 14, Truss sacked Chancellor Quasi Kwarten and appointed Jeremy Hunt as his replacement, while scrapping parts of the latest economic package.
Hunt told British media on the 15th that the British government will make difficult decisions on taxation and spending in the future, possibly increasing some taxes and reducing public spending.
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But according to reports, Britain’s new Chancellor of the Exchequer Hunt refused to rule out the possibility of delaying Trus’s plan to cut the basic income tax rate by a year on October 16, local time, a move that might lead to another reversal of its “mini budget” by Truss a key part of the policy.
Singapore’s “Lianhe Zaobao” analyzed that Truss appointed Hunter as Chancellor of the Exchequer to save her leadership, because the ruling Conservative Party and the international financial market have lost confidence in her ability to manage the country.