The British pound appreciated Monday morning on increased investor confidence. According to experts, this is the result of statements by the new British Chancellor of the Exchequer, Jeremy Hunt, who indicated that previously announced tax plans of Prime Minister Liz Truss are no longer specific.
The value of the coin rose 0.9 percent to $1.1273. Hunt tried to fuel confidence in the financial markets this weekend. For example, he indicated that the British government’s spending plans are covered by income. Hunt will come with a substantiation later Monday.
Truss and Hunt’s predecessor, Kwasi Kwarteng, wanted to borrow money to pay for spending and tax cuts. This created unrest in the financial markets. For example, interest rates on British government bonds shot up, and the pound fell sharply against the dollar.
The unrest this caused already ensured that Truss and Kwarteng reversed the tax cut for the richest British. On Friday, Truss also announced that corporate taxes would be increased after all. Despite these interventions, her government still spends much more money than it comes in.