Rishi Sunak replaces Sajid Javid as Chancellor

This Update was originally sent to clients as a Rapid Response immediately after the announcement that Sajid Javid was being replaced as Chancellor by Rishi Sunak at 12pm on 13th February 2020. The unexpected resignation of Sajid Javid as Chancellor and the promotion of Rishi Sunak to the role could mean that fiscal policy will provide an even bigger boost to GDP growth over the next few years than we already expected. This could increase the upside to our forecasts for GDP growth, interest rates, gilt yields and the pound, which are all already above consensus.