UK government confirms £900m for ‘shovel-ready’ projects – FT

Anil Panchal FXStreet

UK PM Boris Johnson-led Tory government is up with another stimulus announcement, this time for construction of homes and infrastructure, during the early Tuesday morning in Asia. The Financial Times (FT) came out with the news suggesting an estimated outlay of £900 million.

Key quotes

As part of a stimulus package aimed at boosting the economy in the wake of the coronavirus crisis, £360m will also be allocated towards delivering 26,000 new homes on brownfield land.

Officials said the extra investment would help to build up to 45,000 homes, create up to 85,000 jobs and cut around 65m kg of CO2 emissions in England.

Robert Jenrick, housing secretary, also gave more details on the £2bn green grants scheme for home improvements. This will help households to reduce energy use amid pressure on ministers to get the economy growing again with an emphasis on 'green growth'.

FX implications

The news helps GBP/USD to keep its pullback from 1.3004, currently around 1.3075. However, the market’s risk-tone sentiment seems to wait for more clues to extend the latest optimism.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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