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Bota

The immediate effects of Boris Johnson's resignation, unusual what is happening in Britain

UK shares and the pound have risen almost immediately following Prime Minister Johnson's resignation.

UK shares are trading 1 percent higher, while the pound has edged higher, trading 0.75% higher at 1.20 against the dollar, recovering slightly from two-year lows that hit earlier this week.

The British economy still faces serious challenges due to high inflation, slowing economic growth and the crisis over the cost of living.

Walid Koudmani, chief market analyst at broker XTB, wrote in a note to clients:

"However, make no mistake, the pound remains very weak due to the dire state of the UK economy, which is likely to enter a recession as the Bank of England refuses to raise interest rates aggressively to 'deal with rising inflation'.

The immediate effects of Boris Johnson's resignation, unusual what is