British pound ‘recovers’ after first announcement by UK’s new PM

The Australian Business Review’s Ticky Fullerton says the pound has ‘recovered’ after Treasury Secretary Jeremy Hunt’s initial announcement.

Hunt was appointed to the position after Prime Minister Liz Truss sacked Prime Minister Kwasi Kwarten after just 38 days. The stimulus package announced by Truss and Kwarteng weeks ago included plans to cut income taxes, sending the pound to record lows and prompting the Bank of England to intervene.

Mr Fullerton said Mr Hunt was now encroaching into “what the Office of Budget Responsibility called … something of a £1 billion black hole”.

“I think he’s slightly less than half that far.

“So trust is slowly being restored.”