What does Javid's resignation mean for UK markets and investors?

Loose fiscal policy, but more uncertainty

Anna Fedorova
clock • 4 min read

The sudden resignation of Chancellor of the Exchequer Sajid Javid is expected to mean looser fiscal policy, which will be good news for UK assets, but experts have warned the move increases short-term uncertainty.

In a shock to the market and the UK public, the Chancellor announced his resignation yesterday (13 February), just under a month before he was expected to deliver the first post-Brexit Budget. Chief Secretary to the Treasury Rishi Sunak has been confirmed as his replacement. The markets seem to have taken the news as a positive development, with sterling rising against both the US dollar and the euro on expectations that the new Chancellor will employ looser monetary policy to boost markets. Neil Wilson, chief market analyst at Markets.com, said: "The pound seems to like this reshuffl...

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