MNI BRIEF: Limited Economic Impact From UK PM Change - DBRS

The UK will see limited near-term economic impact from the resignation of Prime Minister Boris Johnson, but uncertainties are growing, ratings agency DBRS Morningstar said Tuesday.

A new leader of the Conservative Party -- and therefore de facto PM -- could change the overall direction of fiscal and monetary policy, with potential implications for the outlook, but overall, 'in the longer term, (the government's) fiscal policy will follow a broadly prudent path,” according to Adriana Alvarado, Senior Vice President in the Global Sovereign Ratings Group. (MNI INTERVIEW: BOE Should Look More At Fiscal Risks-OBR Chief)

In line with many commentators views, DBRS say political challenges related to the Northern Ireland Protocol and a Scottish independence referendum are likely to persist under any new leadership.