- Pound Falls as Boris Johnson Calls for Parliament Suspension
British Pound fell on Wednesday amid Prime Minister Boris Johnson called for the suspension of the U.K. Parliament from mid-September to mid-October; in a suspected move to block the opposition of no-deal Brexit from mobilizing.
“This is a new government with a very exciting agenda,” Johnson said in a pooled TV interview. “We need new legislation, we’ve got to be bringing forward new and important bills and that’s why we’re going to have a Queen’s Speech and we’re going to do it on Oct. 14.”
The uncertainty surrounding the Brexit and U.K parliament dragged Pound from 1.2289 against the US dollar to 1.2158 before paring losses to 1.2218.
Opposition and businesses are saying Johnson strategy is to ensure they do not have enough time to block no-deal Brexit as the prime minister is bent on pulling the UK out of the European Union without a deal.
While the Prime Minister denied such a strategy, he said it is normal for a new government to want to move ahead with its own agenda with a Queen’s Speech.
However, experts said the timing is deeply controversial as the European summit on Brexit is scheduled for Oct. 17-18, while the queen speech is planned for October 14, three days before the European summit and 16 days ahead of the minister’s planned exit.
Laura Kuenssber, BBC, said the Prime Minister’s team see the suspension “as a useful political side effect” that would deny lawmakers enough time to mobilize to stop a no-deal Brexit.
Investors are concerned that a no-deal Brexit would plunge the U.K into economic crisis in the near-term as capital flight and new job creation would be key challenges.
Despite the new Prime Minister admitting there would be headwinds in the near-term, he also said it is a necessary price to pay in order to move forward as a nation.
