The risky outlook of the UK economy has put the brakes on sterling from last week and will continue to plague the outlook. Despite raising interest rates back to the pre-Covid emergency cut level, the Bank of England’s Monetary Policy Committee remains cautious about the path ahead. With increasing inflation expected primarily from soaring energy prices, an uncertain path could lay ahead within the UK.
Comparatively speaking, there are not as many big announcements this week on the data calendar opposed to last. However, the UK will release inflation data for February on Wednesday. The markets will keep a keen eye on the release, as mentioned previously inflation is being closely monitored. Chancellor Rishi Sunak has stated the government will help “where we can make a difference”. The spring statement is due next week which normally does not throw any curveballs, however this time could be different with even some Tory MP’s piling the pressure on the Chancellor to cut fuel tax. Labour are also calling for the government to disregard the 1.25% increase to National Insurance which is due to go live in April.
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Author: Jack Nicholls, Senior Relationship Manager.
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