Eyes Turn to US Fed Call as Markets ‘Tolerate’ UK Budget

Eyes turn to US Fed call as markets ‘tolerate’ UK Budget

In London, the FTSE 100 index ended up 7.96 points, or 0.1%, at 10,694.50.

John Healey's budget has kicked the can down the road and left Britain more vulnerable to future shocks says Mel Stride

All eyes were on one number when John Healey got to his feet this afternoon: his fiscal headroom.That is the cushion he leaves himself against his fiscal rules.In March, the OBR put it at around £24 billion. Today he has shrunk it to £15b. This matters. We live in an economically uncertain world, and lower headroom means a greater vulnerability against future economic shocks.He should have built it up, not let it shrink. Since the OBR was set up…

Healey keeps markets calm with reduced headroom, but growth downgrade and debt forecasts may come back to bite

UK Budget Shrinks Fiscal Buffer Without Market Shock; Fed Dissent in Focus - ActionForex

Sterling and UK gilts showed little reaction to Chancellor John Healey’s Budget, despite higher borrowing forecasts and a reduction in fiscal headroom. The remaining buffer against the fiscal rule fell from £23.6B in March to £15B, broadly matching market expectations. Attention is shifting to today’s Fed decision, where a hold is overwhelmingly priced at 90.6%, but the voting split could reveal whether pressure for faster tightening is building.

OBR forecasts £14bn rise in debt interest as fiscal headroom shrinks

The Office for Budget Responsibility (OBR) has forecast a £14bn increase in government debt interest payments this year, as the chancellor confirmed a The Office for Budget Responsibility (OBR) has forecast a £14bn increase in government debt interest payments this year, as the chancellor confirmed a reduction in fiscal headroom from £24bn to £15bn.