A quick recap on yesterday's budget, with the main takeaways being that real GDP growth for 2025 has been downgraded to 1% (notably from 2%) from initial predictions in the October budget.
A contributing factor towards this downgraded growth is attributed to The Bank of England having to raise interest rates later in the year to bring inflation back down, rising energy costs and further economic uncertainty off the back of Trump's tariffs. It should be noted that GDP does rebound back to 1.9% growth, but not until 2026.
In truth, today's statement has been regarded as a bit of a non-event due to a lack of market reaction. But a bit of a positive for The Chancellor will be the slight easing of bond premiums. The yield for UK 30-year bonds eased by almost 0.1% to 5.283%. Similar dips were also seen in both 10-year and 2-year bonds.
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