GBP, gilts stabilize after heavy sell-off – BBH
|Pound Sterling (GBP) and long-term gilts stabilized after yesterday’s plunge, BBH FX analysts report.
UK sets autumn budget for Nov. 26
"UK Chancellor of the Exchequer Rachel Reeves announced that the autumn budget will take place on 26 November, a month later than the typical timeframe. Investors worry the UK government will prioritize tax hikes over spending cuts to shore up the fiscal position."
"We see room for GBP to edge lower versus EUR. First, the Bank of England (BOE) could step in and purchase gilt to rein-in runaway long-term yields. Second, higher taxes risk deepening the UK’s sluggish growth outlook and add pressure on the BOE to ease more aggressively."
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