MrMBrown: (UK) Pretty clear now, if it wasn’t already, that mkts have lost confidence in Govt’s ability to control the fiscal backdrop…participants will surely want to see a concrete commitment from HMT to further spending cuts/revenue raising measures in order to restore confidence…

…though, with such action serving only to further dent already anaemic growth, and with inflation still sticky, the UK is in a worst of all worlds scenario of stagflation…which, in turn, will keep the BoE hawkish, for all the wrong reasons, at precisely the wrong time…

… tough to argue for anything other than being short GBP assets whether FX, rates, or equity…things look dicey already, and seem likely to get worse before they get better

submitted by /u/XGramatik
[link] [comments]

Make a post in our subreddit XGramatikInsights, and your thoughts will appear here!

Share the Post:

Related Posts

📊💡🤓USD/CNH 🇨🇳 China’s consumer inflation has fallen to near zero, adding to fears of a long-term deflationary slowdown despite continued government stimulus. According to Bloomberg and Reuters, Shorts in the Yuan hit an 18-month high as China considers weakening the Yuan in 2025 due to Trump’s…👇

🇨🇳 China’s consumer inflation has fallen to near zero, adding to fears of a long-term deflationary slowdown despite continued government

Read More