Tuesday will see Rishi Sunak become the youngest prime minister in modern British history and the country’s first non-white head of state. He has vowed to tackle the “deep economic problem” the nation is now experiencing.

Jeremy Hunt, the chancellor, is urging Sunak to move forward with a new debt-cutting plan the next week in order to prepare for a vital Bank of England meeting on November 3.

Former chancellor Sunak was elected Tory leader on Monday after his two opponents, Penny Mordaunt and Boris Johnson, withdrew from the race. In less than two months, he becomes Britain’s third prime minister.

After a disastrous 44 days as prime minister, Liz Truss announced her resignation. She will hold her final cabinet meeting on Tuesday morning before submitting her letter of resignation to King Charles.

Sunak, 42, will next go to Buckingham Palace to meet the monarch before returning to Number 10 at around 11.30am to begin putting together a cabinet; Hunt is expected to continue serving as chancellor, according to the next prime minister’s allies.

The BoE’s deputy governor, Dave Ramsden, remarked that after a number of policy U-turns, gilt yields were only marginally higher than they were prior to Truss’ dismal “mini-Budget” on September 23.

The economic duo of Sunak and Hunt, both regarded as fiscal conservatives, is hoped to calm the markets and keep borrowing costs low, resulting in cheaper mortgage payments.

The nation was “in a fix,” according to Sunak, and the Conservative party was experiencing “an existential moment.” The first Hindu prime minister of Britain wished his co-workers “Happy Diwali” as the private meeting came to a close.