Markets reacted positively to the new UK budget

Chancellor of the Exchequer Jeremy Hunt's first budget promoted the idea of ​​stability after the market turmoil that followed Kwasi Kwarteng’s fiscal plans. On Thursday, Hunt announced spending cuts as part of his clean-up operation to reopen the economy and raise taxes.

Currency and bond markets were rattled by the last financial statement of the previous Chancellor of the Exchequer on September 23rd. However, markets’ reaction to Hunt's statement looked like a complete calm. Back in September, Kwarteng said his plans were about a "new era." Since then, many of his proposals have been rejected. Elizabeth Truss lost her premiership after just 44 days. While Hunt's speech was delivered in a measured bank tone and was not pompous.

According to Sarah Hewin, senior economist at Standard Chartered Bank, the new UK budget had to be realistic. The reaction of the markets to the unrealistic budget a couple of months ago was negative. According to the economist, one of the main drivers for today was to ensure the markets are not upset.