The fallout from last Friday’s mini-Budget has been bigger and more volatile than almost anyone expected, with sterling hitting an all-time low against the dollar; runaway gilt yields; a U-turn from the Bank of England on its plans to start quantitative tightening. And that was all by Wednesday lunchtime.
Will things be looking up anytime soon? The pound has recovered to pre-mini-Budget levels, hovering around $1.11, a point the Prime Minister’s supporters are keen to emphasise. But the pound has always been a secondary part of this story: with soaring borrowing costs the primary indication of the market’s confidence (or lack thereof) in the government’s tax cut-and-spend strategy.
The real good news ending this tumultuous week (or, rather, better news than what’s been flooding in so far) is that the Office for National Statistics has just released revised GDP figures, and the new numbers suggest that the UK is not, as feared, already in recession.
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