Rishi Sunak appears to have won the British PM race

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Image Source: Vox

Former chancellor, Rishi Sunak had been the front-runner to succeed his former boss Boris Johnson as prime minister.

But he could not convince Tory members, who instead appointed Liz Truss to Downing Street in September.

He is now the favorite to succeed Ms. Truss after she resigned.

What kind of a leader might Rishi Sunak be, and who is he?

The main topic of Mr. Suanak’s campaign messaging over the summer was the deteriorating health of the UK economy and his solution.

Mr. Sunak had previously told the BBC that he would prefer to lose the Tory leadership battle than “win on a false pledge.”

It appeared to be an assault on the tax cuts Ms. Truss had promised.  Although, at the time had called Mr. Sunak’s actions “Project Fear” and “scaremongering.”

To calm the financial markets, Monday saw the withdrawal of nearly all of the anticipated tax cuts.

Within a few weeks after taking office as chancellor in February 2020. Mr. Sunak found himself managing the UK economy as the pandemic and accompanying lockdowns got underway.

Many others believed that this teetotal millennial turned 40 during the first lockdow. Even though, he was a reassuringly steady hand on the wheel.

His popularity skyrocketed after he promised to do “all it takes” to aid those affected by the pandemic. And in the spring of 2020, he announced $350 billion in support.

However, as the UK’s economy continued to be battered. He had to cope with the consequences of being punished by police in June 2020 for violating lockdown regulations.

The millionaire’s understanding of the scope of the cost-of-living pressure hitting suffering households was called into question by several Conservative critics in April.

The financial situation of Mr. Sunak and his family was scrutinized throughout that month. Including his wife, Akshata Murty’s tax troubles.

Investors remain calm as Rishi Sunak wins the prime ministerial election

The markets responded as soon as it was announced that Rishi Sunak would take over as the next prime minister of the UK.

On Monday afternoon, the pound was essentially flat versus the dollar, and the cost of government borrowing remained low after Commons leader Penny Mordaunt withdrew from the campaign for the post.

The pound had climbed toward $1.14 earlier in the day before reversing course.

Former prime minister Boris Johnson withdrew from the race on SUnday.

Following outgoing Prime Minister Liz Truss’s mini-budget, the pound fell to a record low versus the dollar last month, and interest rates on government borrowing shot up.

After former Chancellor Kwasi Kwarteng made big tax-cutting promises, investors became alarmed.

To calm the financial markets last week, new Chancellor Jeremy Hunt nearly completely reversed Ms. Truss’s tax cuts. However, the markets have remained uneasy.

Read Also: Pound rises as Liz Truss resigns as Prime Minister 

The pound dropped as low as $1.11 on Friday, while government borrowing prices increased due to ongoing political unrest and new economic cautions.

Government borrowing rates decreased on Monday, with the yield on bonds with a 30-year maturity falling to 3.8%.

However, after the mini-budget and Mr. Kwarteng’s subsequent promise to announce additional tax cuts, the rate reached 5.17% on September 28. This prompted actions by the Bank of England.

Mr. Hunt will lay out the government’s economic strategy for taxes and expenditures on October 31.