UK Politics: Dramas and more resignation letters
In recent trade, there has been news that Suella Braverman has resigned as interior minister after just 43 days in the role, citing a breach of rules as well as concerns over the direction of the government:
In the resignation letter posted to Twitter, she said, “It is with the greatest regret that I am choosing to tender my resignation.”
The political shake-up is just one of a number of themes weighing on the pound at a hugely turbulent time for the government, with Truss under intense pressure to resign after a budget on September 23 set of turmoil in financial markets.
On Friday, Truss fired her finance minister, Kwasi Kwarteng, over the incident.
GBP/USD update
Meanwhile, the pound is down 1% on the day and has dropped from a high of 1.1357 to a low of 1.1184 so far and the markets expect sterling to remain under pressure amid an outlook for rising inflation and a recession in Britain.
The Bank of England is expected to increase rates by 75 basis points rather than 100 bps at its November meeting following Wednesday’s Consumer Price Index inflation data. The UK Office for National Statistics has reported the headline Consumer Price Index (CPI) at 10.1%, higher than the expectations of 10% and the prior release of 9.9%. Also, the core CPI has escalated to 6.5% than the projections of 6.4% and the former figure of 6.3%.