Tim Besley, a member of the Bank of England’s monetary policy committee gently chides the government, saying they will ultimately have to deal with “stressed” (they’re so polite, the English…) public finances. It is too early to know what plans to consolidate the debt might look like. There could be more target measures on the the fiscal side, he says, presumably applying more fiscal stimulus.
Concerns about the UK budget are the farthest thing from the market’s mind at the moment. It is all about momentum and the pound remains underpinned within shouting distance of the 1.6000 level having broken 1.5950 earlier today. We trade now at 1.5944.