UK Budget: Weaker economy puts the squeeze on finances - TDS

Sandeep Kanihama FXStreet Contributor

Analysts at TDS explain that the UK’s Autumn Budget was uneventful as predicted, with the biggest headline-grabbing policy (a cut in stamp duty for first-time buyers) likely to have little effect on the economy or the government’s finances.

Key Quotes

“Most notably, yesterday’s OBR forecasts cut UK growth forecasts considerably, predicting sub-2% growth through 2022. The government’s deficits have subsequently been revised up significantly in FY2019/20 and beyond, as has the debt-to-GDP ratio.”

“Gilt issuance for FY 17/18 saw only a marginal increase by £0.9bn. Overall, the budget was in line with expectations with moves in rates space relatively muted.”

Author

Sandeep Kanihama

FXStreet Contributor

Sandeep Kanihama is an FX Editor and Analyst with FXstreet having principally focus area on Asia and European markets with commodity, currency and equities coverage. He is stationed in the Indian capital city of Delhi.

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