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Autumn Statement: Potential Market Movers (2/2)

UK
  • The other thing to watch will be if there are any policies that the market perceives to be immediately inflationary - a big cut to income tax could come in this category. This would likely see some steepening of the SONIA curve with the market reassessing how many cuts would be appropriate next year.
  • One other potential market mover is any change to pension regulations, a potential new superfund and incentives to invest in large scale long-term UK infrastructure projects – particularly for defined benefit pension schemes. Depending on how this is structured (and if there are enough incentives to actually change investment decisions) this could have potentially large impacts on the long-end of the curve in particular.

For MNI's full Autumn Statement Preview see here.

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