What are the implications for GBP?
Liz Truss stands out by having an agenda including popular policies, such as lowering taxes. On the contrary, Rishi Sunak is focused on tight fiscal policies, including raising corporate taxes.
In an already high-inflation environment, low taxes could push consumer prices even higher. The
Bank of England is likely to step in and raise the interest rate in response, potentially supporting the GBP.
Therefore, if Liz Truss takes control of the UK government, the GBP may strengthen. The bearish sentiment for GBP may occur if Rishi Sunak wins.
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