Commenting on Boris Johnson surviving the no confidence vote, Frédérique Carrier, Head of Investment Strategy in the British Isles and Asia at RBC Wealth Management, said:
“The PM has survived the no confidence vote, but the number of Conservatives MPs who voted against him is substantial enough to weaken his position further. This is unlikely to be the end of turmoil and the victory is not clear enough to draw a line under the past few months.
“We think this increases the possibility of further stimulus measures as the PM attempts to improve his popularity. Chancellor Sunak’s recent GBP 15B stimulus package, led expectations for the year end Bank Rate to reach 2.3%. Any further such supportive measures would likely boost further the Bank Rate year end expectations.”