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Why did UK Prime Minister Resign? Complete Study of  Liz Truss Resign

Oct  31  2022

Economy Simplified

Basic of Economy 

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Why did UK prime minister resign?

Why did UK prime minister resign?

UK Prime Minister Liz Truss announcing her resignation after coming under increasing pressure from Conservative MPs.

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She claimed that the Conservative Party had given her the mandate to raise growth and cut taxes in order to tackle the “poor growth

Complete Study of Liz Truss Resign

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Pound rises after Liz Truss’s resignation

The pound was trading at $1.128, up 0.6% for the day.  It is still where it was on September 22nd, prior to Liz Truss’ market-moving budget.

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Mini-budget gone horribly wrong

Mini-budget gone horribly wrong

A disastrous mini-budget that shook the markets, former chancellor Kwasi Kwarteng was forced to resign.

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Mortgage rates and the pension fund crisis

Mortgage rates and the pension fund crisis

The UK pension fund crisis was directly caused by the mini-Budget and the decline in gilt prices  

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The market’s reaction

The market’s reaction

Substantial increase in borrowings during a period of uncertain growth prospects for the UK, the mini-Budget alarmed market investors. -

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U-turn announcements by Liz Truss 

U-turn announcements by Liz Truss 

 The market would proceed to penalise UK assets only if Truss admitted her error. – Liz Truss fired her chancellor, which was the largest blow.

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Restoring Faith of the financial markets 

Restoring Faith of the financial markets 

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The next Prime minister will need to take additional steps to win back the confidence of the financial markets.

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