Chancellor Jeremy Hunt’s Spring Budget analyzed by ING economists as the Pound Sterling (GBP) outlook is scrutinized.
In the aftermath of Chancellor Jeremy Hunt’s Spring Budget delivery, ING economists assess the impact on the Pound Sterling (GBP) and delve into potential market reactions.
Budget’s Impact on Gilt Market
If the success of Wednesday’s budget is measured by Chancellor Hunt’s ability not to disrupt the Gilt market, then it can be deemed a success. Bond investors appeared unfazed by the announcement of a higher FY 24/25 Gilt supply remit, demonstrating a calm response to the fiscal developments.
Short-Term Sterling Prospects
In the short term, ING economists anticipate that the Pound Sterling could see improvement, influenced either by a softer Euro (today) or a softer Dollar (Friday). The analysts suggest that the direction for EUR/GBP today is likely to be between 0.8525 and 0.8535.
As the economic landscape continues to unfold, ING’s insights provide a nuanced perspective on the potential trajectories for the Pound Sterling in the wake of the Spring Budget.
