The Autumn Statement
Tomorrow the Chancellor, Philip Hammond will deliver the autumn Budget. He will outline spending and taxes post-Brexit vote. We will also see forecasts relating to unemployment, growth and inflation. This will give an indication as to policy moving forward.
Inflation will be particularly interesting as the fall in Sterling has caused import prices to rocket which will soon hit the consumer. This is not good news for the UK economy as wage growth will not keep up. Some economists are predicting we could be as high as 2.7% by the end of Q1.
George Osbourne’s pledge to balance the books by the end of his tenure has been scuppered by the referendum vote and the government face a black hole of around £25bn. I would expect there to be a rise in borrowing of £5bn upwards.
Expect drop in growth forecasts and the pound to be hit due to this. If you have currency requirement involving selling Sterling it may be wise to take advantage of current highs.
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