Reeves' Wobble: Gilts Market & Budget Test

On July 2nd, a pivotal moment unfolded in the British Parliament as Rachel Reeves, a key political figure, left the Commons chamber visibly upset after welfare reforms collapsed. This event sparked a wobble in the gilts market, with some investors believing Reeves commitment to strict fiscal rules was the only thing preventing another economic crisis. However, a different perspective emerged, suggesting the volatility was due to a lack of liquidity, not a vote of confidence in Reeves. As Reeves prepares to deliver her Budget, she faces a credibility test, balancing revenue raising with spending cuts amidst a significant budget deficit and foreign ownership of bonds.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.