UK: Opposition failed to pout the Chancellor under pressure for budget - SocGen

Kit Juckes, Research Analyst at Societe Generale, notes that the UK Budget was largely a non-event but whereas the Opposition failed to pout the Chancellor under pressure, the press are attacking him over National Insurance increases for the self-employed.

Key Quotes

“As Jason Simpson observed, the US ADP data moved Gilt prices more than the cut in issuance did (the fall, in any case, was actually less than expected). UK fiscal policy is not going to boost growth whereas US fiscal policy is still expected to do so. The Fed is going to hike rates whereas the MPC is not. The US economy will grow faster in 2017 than 2016 whereas the UK will not and the 2018 gap will be significant. It all continues to weigh on GBP and GBP/USD 1.20 remains in our sights.”