The markets seem to be reassessing their view here and around the world. <\/p>\n
The effective interest rates on UK government debt fell sharply, regardless of whether those loans were for two or for 30 years. Ten-year rates fell to the lowest level this year, while two-year rates dropped to the lowest since last August.<\/p>\n
This could save a few billion from the gap in the Budget calculations, at just the right time for the chancellor.<\/p>\n
Even more important, it shows the UK is not being treated as an outlier by the markets. <\/p>\n
The chancellor went to some effort in her off-the-cuff UK sales pitch to worldwide investors in the US last week. <\/p>\n
Britain was, she said, the best place to invest and trade globally, that she was going to sort out Brexit-related economic problems and the UK had the fastest declining deficit in the G20.<\/p>\n
The Budget is going to be a challenge, but catastrophic suggestions about British bankruptcy and bailouts seem quite spectacularly off the mark, assuming that is, that the government does have nearly 400 MPs for its agenda. <\/p>\n
No one wants to be caught on the wrong side of the very real chance of a tech market crash, or unpredictable spike in the US-China trade war, or perhaps any unexpected innovations in the appointment of the new chair of the Federal Reserve in the US.<\/p>\n
The inflation number and gilt rate falls offer the chance of some respite, for a break in the circle of doom. <\/p>\n
The question is whether the tax measures Reeves needs to close even a smaller Budget gap, risk bringing it back through another door.<\/p>\n","protected":false},"excerpt":{"rendered":"The markets seem to be reassessing their view here and around the world. The effective interest rates on…\n","protected":false},"author":2,"featured_media":219879,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":{"0":"post-219878","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-uk","11":"tag-united-kingdom","12":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/219878","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=219878"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/219878\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/219879"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=219878"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=219878"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=219878"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}